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Phone: (763) 420-5087
Roulet Law Firm, P.A.

Should My Business Incorporate in Delaware

Business owners often hear about certain benefits of incorporating in "incorporation-friendly" states like Delaware, Alaska, or Nevada and wonder if incorporating in one of these states would be right for them. Most of the clients I see would not benefit under this arrangement, because they are headquartered in Minnesota and most of  their business is conducted in the Minnesota.  Typically, they would still have to follow Minnesota law, unless they leaned heavily on accountants and lawyers to try to set up a really complicated arrangement. If they were to incorporate in Delaware, the registration, upkeep, accounting and legal fees would generally offset any potential advantages. We find that incorporating in another state is just not a cost-effective option for many small businesses who do most of their business in Minnesota.

For business who will be operating in multiple states, the option to incorporate in a "business-friendly" state like Delaware, Alaska, or Nevada becomes a more viable option.

If you have questions about whether incorporating in a "business-friendly" state is right for you, please contact our office.