Is it better to incorporate my nonprofit or not?

Where to Incorporate my Business?

• Looking to Incorporate my business and want to know the legitimacy of incorporating in/with a Nevada based corporation. I live in Illinois and searched online. Contacted a Nevada Incorporation company and sounds like an easy/faster process (not too mention cheaper) to incorporate through them. All in one package deal eliminating all the steps it takes to incorporate the traditional way.

• Answer:

  Talk to an accountant. For most small businesses, it makes absolutely no sense to incorporate outside of their home state. As you and your company are operating in Illinois, you would still owe Illinois income taxes. Also, if you incorporate out of state, Illinois would treat you as a foreign corporation which may increase any annual report fees that you would have to pay. If you incorporated in Nevada, you would also be subject to Nevada annual reporting requirements and fees. Many small businesses find out that incorporating in Nevada or Delaware actually increases the total amount of fees/taxes that they have to pay.