I was thinking about possibly incorporating in NV for the primary reason to avoid state taxes. I've spoken with lawyers and I know I would not be able to claim any home office expenses (as I don't deem it necesary) and I would have to establish banking in NV as well.

I wanted to query about any complications or even advantages that one incurred through foriegn incorporation?

Since you've spoken with lawyers your next stop should be to talk to an accountant. Among the things to remember, though: depending on what state you live in and how you actually go about conducting your business, if your business "nexus" is in your home state, the corporation can still be liable for state taxes there, even if it's incorporated in Nevada. And you should investigate whether you might have to file with your home state as a foreign Nevada corporation doing business within your state.

And of course, the corporation has a federal tax liability wherever it is -- all you might be able to avoid is the much smaller state tax from your home state. And whatever you pay yourself, in salary or as a consultant or dividends, etc. will be taxable on your individual state return.

If you can project what your profit might be and calculate the tax savings versus the expense of doing business remotely, you might be surprised at how small the tax benefit is.

Originally posted by JayC
1. Among the things to remember, though: depending on what state you live in and how you actually go about conducting your business, if your business "nexus" is in your home state, the corporation can still be liable for state taxes there, even if it's incorporated in Nevada.

2. And you should investigate whether you might have to file with your home state as a foreign Nevada corporation doing business within your state.

1. While the business' base is on the net, the vehicle its pushing is the advice service and customers as well as the workers will be located all across the country. I do intend to advertise within the state I reside just as much as I am over the internet.

2. Since the company will render a non-tangible service, I assume that I would not, but do plan to seek professional counsel.