Entity State Selection

by a searcher from The University of North Carolina at Chapel Hill - Kenan-Flagler Business School

3 weeks ago

For Operators/Searchers that have operated in the past:  

Particularly for regional businesses, have you seen a significant benefit from registering your NewCo in the state the OldCo has been operating in?  If a lot of the appeal of the business' brand is that it is "local", how do you preserve that if you are registered in Delaware?  I know some states have programs just for businesses registered in the state.  Or is Delaware always the best option to register your business?  

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3 comments

lender from Eastern Illinois University

In many states if you are primarily operating in that State but your entity is registered elsewhere, you may need to register as a foreign entity in the State you are operating in for licensing purposes. I am not an attorney, but I have seen this required in some states in the past. Just something to keep in mind.

3 weeks ago | like reply | 1 like

professional from George Washington University

In addition to Fareed's comments on corporate legal guidance, there may be tax reasons as well. I depends on a lot including your plans for the future and/or sale of the business down the road. You'll want to share these details with an attorney and/or tax advisor. As a native Texan and fellow Tar Heel, I wish you all the best!

3 weeks ago | like reply | 1 like

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