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Posted: 8/30/2017 11:50:04 AM EDT
im starting up a blockchain based business and want to incorporate.  So theres tons of these $50 in 1 hour deals floating all around the internet.  but just seems really sketchy.

Also, whats so desirable about incorporating in delaware, nevada, wyoming?  why would I not do it here in AL?   Its not retail or anything, all in the blockchain cloud.  in fact I wont know why im doing business with - itll all be public key based transactions.  customers will be all around hte world, and all my income will never be in fiat, itll all be cryptocurrency income that ill eventually cash out form conbase/whoever.  My "office" will be here in AL.  or wherever I happen to travel to that day.  i for sure will never be collecting revenue in any state, if thats what matters

thanks for any help.
Link Posted: 8/30/2017 12:02:53 PM EDT
[#1]
Why do you want to incorporate?
Link Posted: 8/30/2017 12:13:16 PM EDT
[#2]
Delaware has favorable corporate tax rates, and IIRC, litigation is easier on corporations??

C-Corps pay corporate income tax, but you probably don't want a C-Corp, so tax rates shouldn't factor in to your decision.  I think its 100 or less shareholders that are citizens, or something like that, to not be a C-Corp??  

S-Corps are more like an LLC.  You incorporate to cover your ass from liability, but the entity is not taxed on profits, only owners/shareholders are taxed on their share of income.

A C-Corp is taxed on profits, then pays their owners/shareholders, who are taxed on income (double taxation).  An S-Corp is not taxed, but owners are taxed on their share of income, at their individual rates (pass through).

This is not my area of expertise, and I am certainly no expert, but this is what comes to mind.
Link Posted: 8/30/2017 12:15:01 PM EDT
[#3]
legitimacy's sake, and to provide liability separation.  also will want to issue stock to attract invetstors.
Link Posted: 8/30/2017 12:17:58 PM EDT
[#4]
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Quoted:
legitimacy's sake, and to provide liability separation.  also will want to issue stock to attract invetstors.
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 You need an accountant and an attorney.  Do not try to DIY.  Otherwise, you will likely not get any of these potential benefits.
Link Posted: 8/30/2017 12:19:11 PM EDT
[#5]
Discussion ForumsJump to Quoted PostQuote History
Quoted:Delaware has favorable corporate tax rates, and IIRC, litigation is easier on corporations??
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View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:Delaware has favorable corporate tax rates, and IIRC, litigation is easier on corporations??
 You pay corporate income taxes where profits are earned, not where you incorporate.

C-Corps pay corporate income tax, but you probably don't want a C-Corp, so tax rates shouldn't factor in to your decision.  I think its 100 or less shareholders that are citizens, or something like that, to not be a C-Corp??  

S-Corps are more like an LLC.  You incorporate to cover your ass from liability, but the entity is not taxed on profits, only owners/shareholders are taxed on their share of income.

A C-Corp is taxed on profits, then pays their owners/shareholders, who are taxed on income (double taxation).  An S-Corp is not taxed, but owners are taxed on their share of income, at their individual rates (pass through).
 C and S corporations are not types of corporations but tax elections.
Link Posted: 8/30/2017 1:02:04 PM EDT
[#6]
im just wondering how state taxes work in this particular situation.  100% of my income will be in cryptocurrency, from completely anonymous sources anywhere in the world.  none of my expenditures will be in the state of AL.  Anything I cash out of cryptocurrency will be to my bank in Texas (USAA).

Just wondering if I incorporate in a state with no income and no corporate taxes, if that would be beneficial to me.  do i even need to worry about franchise taxes or any thing like that?  like i say, besides my domain/hosting/severs costs, everything else is 100% in the blockchain clout, no fiat involved.
Link Posted: 9/1/2017 11:01:16 AM EDT
[#7]
Discussion ForumsJump to Quoted PostQuote History
Quoted:Just wondering if I incorporate in a state with no income and no corporate taxes, if that would be beneficial to me.
View Quote
 No.  But check with your accountant (get somebody good and pay).
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