What is the Best Place to Incorporate?
According to Forbes magazine, the top ten cities for business in America have changed drastically in just a few short years. North Carolina and Colorado are clearly the best states for incorporating a business — half of the top twenty cities in Forbes’ poll are from these two states.
At the top this year is Raleigh, North Carolina, with high scores in job growth and projected job growth as well as one of the top scores in terms of workforce education. A growing population of qualified workers combined with a cheap cost of doing business score means you’ll be attracting startups and money from all over the country.
A big success story in this year’s poll is Austin, Texas which jumped to number 8 overall after coming in in the low 40s in last year’s poll. Why the jump? Forbes included two new categories in their ranking this year — a calculation of the impact of sub-prime mortgages in the area, and projected job growth. Austin scored so well in these two new categories that their profile shot up nearly 40 spots in the rankings. Austin’s projected job growth is 2.3% over four years (fifth highest in the country) while their sub-prime score is in the top fifteen.
But knowing a city’s rank in one financial magazine’s poll doesn’t really equip you to say if a town is good for incorporating a business. It is well known that the state of Nevada is a perfect state to incorporate a business from, mostly due to to low taxes. Be careful, though — don’t try to run a business from your home state while it is incorporated in Nevada. Your home state probably has laws against this, and you will get caught. At that point you may be jailed or at very least penalized and assessed for back taxes. The “Nevada” solution involves incorporating your business in a tax-friendly state like Nevada, opening another branch in your home state, then having your lawyer work out a deal where you manage the Nevada business from your home state — for a fee.
Figuring out a city or a state that would be a boon to your new business incorporation is more than numbers and tax-loopholes — you need to find a city you wouldn’t mind living in, a city that excites and interests you and other people around the country. When it is time to incorporate a business, do your research. Just because Forbes magazine loves Fort Collins, Colorado doesn’t mean you will to.
This post is part of a series of posts about “best places to”. Other posts include:
- What Are the World’s Best Places to Live?
- Where Are the Best Places to Live in the USA?
- Where Are the Best Places to Retire?
- Wheret Is the Best Place to Buy Movies?
- Where Are the Best Places to Ski?
Also on a similar topic is this page about the cheapest places to live in America. Check it out.