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Which state is best to open company - to Save Tax or Tax Free: Taxes, Registration, Income taxes, Sales Texas?

New York, NY |

We all are living in NY...but we are ready to open company in any state----so which state is best to open company to save taxes?
Example : If we open company in texas, then do we need phycial location or P.Obox is fine and have a branch in New York
Infact if we want to open company then is this important to have phyciall location or we can open company on P.O Box address?

Attorney Answers 4


  1. There is a common misconception about registration and taxes. If you are resident in New York and your are doing business in New York, e.g., you have a mailing address in NY and you are making money here, you are going to have to register your compatny in New York as a foreign company even if you do not first register it in NY. Personally I like Delaware for its service, its laws, and a few other things. However, unless one lives in a state that has no income tax, some state is going to tax you.

    I work with many startups. Whether you register in NY or elsewhere depends on your near and long term goals. If you are going to be a smail company serving a local or regional market, registering in New York is fine. If you want to be a big company and do business nationally or internationally, the modest additional cost of organizing in Delaware might be worthwhile.

    I should also note that in most states you must actually have a physical presence there to organize there. Hence Texas is not a viable choice since no one lives there. Texas is also expensive for registration.

    New York has a high priced publishing requirement, but the price depends on where in NY you business is located.

    Best regards,

    Ken Sprang


  2. The best place is where you have a physical presence: New York.

    The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here.


  3. As the other attorneys have suggested, it is best for most start-ups to organize in the state where they have a physical presence. The type of business you have and how you intend to grow it may be a factor to consider, but generally, the place where YOU are located is a good starting point. Good luck!

    Ms. Brown may be reached at 718-878-6886 during regular business hours, or anytime by email at: marykatherinebrown@hotmail.com. All of Ms. Brown's responses to questions posted on AVVO are intended as general information based upon the facts stated in the question, and are provided for educational purposes of the public, not any specific individual, and her response to the question above is not legal advice and it does not create an attorney-client relationship. Ms. Brown is licensed to practice law in New York. If you would like to obtain specific legal advice about this issue, you must contact an attorney who is licensed to practice law in your state.


  4. So little facts...so little an answer. I need to know answers to 30-40 questions I have to be able to answer your question. However, if it was so easynconsider why so many people have nomidea on this topic. The reason is because one size does not fit all.

    My answer is not intended to be giving legal advice and this topic can be a complex area where the advice of a licensed attorney in your State should be obtained. Please click "helpful" or "best answer" if my answer added any value or add a "comment" if you have more info for me to help you get a better answer.

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