Martin Zwilling over at Startupprofessionals.com has a nice post regarding why start-ups should consider incorporating / organizing their business in their home state. The post can be found here, but here is a brief summary:
- Don't automatically flock to incorporating in Delaware. Sure there might still be some advantages to doing so, but they don't really apply to start-ups.
- In Indiana, where I practice law, the filing fees for incorporating a business are inexpensive and the process is relatively straightforward - not the case in popular states such as Delaware and Nevada.
- Attorneys in your home state, if you are using an attorney (hopefully you are), will be more familiar with your state incorporation laws.
- Your company may qualify for an intrastate securities law exemption in the event it offers securities for sale.
- There is no need to register as a foriegn entity in your home state - and added expense if you incorporate elsewhere.
As he points out, there are many other concerns that should be addressed when determining in what state you should incorporate - concerns you should address with a corporate attorney in your home state.