I’m often asked, “Why can’t I just incorporate in Delaware?” Well, for many small businesses, it doesn’t make legal or financial sense to incorporate in Delaware if all of your business activities are going to take place in, say, North Dakota. In many instances, you’ll end up doubling your formation filing fees, adding to the level and complexity of the tax returns you’ll need to file, and increasing your costs.
One of the cost increases comes in the form of needing a “registered agent” to accept legal papers for you in the state of formation. What are the requirements for a registered agent? Ryan Roberts, Esq. has a cogent post on the subject, but here are a few highlights:
- No P.O. boxes
- Available during normal business hours
- Keeping your business address on file current