Setting Up a Business, Part One - Where Should You Set Up Your Business?

Are you ready to set up a business? You may be wondering what your options are. Read on to find out more about where you might want to set up your business structure.

When you're planning to start a business, you could take the least formal route and just set it up locally as a sole proprietorship, or you can incorporate it and turn it into a formal business structure. The former might seem easier at first glance, but almost everyone would benefit a great deal from going the latter route. Here are a few considerations that will help you get started on your path to successful business ownership.

First of all, you do not have to set up your business where you live. There are a number of states that are generally seen as particularly good choices for setting up a business. For example, if you have a corporation and you plan to take it public at some point, you may want to set it up in Delaware. Delaware is typically considered a good state for setting up a company that's going to be publicly traded.

If you're planning a company that is going to be private, however, which is the case for the majority of companies, then there are other states such as Nevada that might be better suited to your needs.

On the other hand, some states, most notably California and New York, are known to be very anti-business. They have lots of regulations and are very difficult to do business in. In addition, it's also very expensive to do business in those states, in part because of their high tax rates and in part because of the extra expense caused by their more stringent regulations.

Nevada, in comparison, is a state where it's generally inexpensive to do business. The regulatory environment is much more pro-business, and it's actually pretty easy to set up your own company. And there are no state taxes.

But how would you go about setting up a business in Nevada, especially if you don't live there? You could have an attorney do it for you, but it's not really necessary. Everything you need to do to set up a corporation or an LLC in Nevada is easily available. You can simply go to their website of the State of Nevada where you can find clear instructions on how to set the company up and what you need to do.

You may wonder if you need an address in Nevada if you wanted to set up an LLC in Nevada. Generally, you don't. Usually, what you would do is get an agent that would represent you. They are easy enough to find -- there are a number of places that will provide a suite number and an address in Nevada for you, and they will even send you your mail.