Best location for corporation setup with no physical location?


I'm looking to put together a "virtual studio" with no physical location, at least initially. The current portfolio of founders could potential consist of members in 4 different states and 1 in Canada. We're considering setting it up with restricted stock at a very low price for the founders. Nobody will be drawing any salary until the money starts coming in.

I'm trying to figure out where the best place to form such a company. Seems like Nevada could be good with no state tax (but no founders there), but it appears in California (1 founder there) for example may require registering as a foreign corporation and being subject to corporate state tax... but in this situation would it really apply or be necessary?

I'm open to forming a corporation anywhere in the world, but something that has reasonable legal protections and lowest possible corporation taxes.

Any input would be most appreciated!

Incorporation Location

asked Mar 29 '10 at 09:17
Startup Advice
55 points

1 Answer


I suspect that you will, in fact, be conducting business in all of the locations and, thus, will have to file in each jurisdiction (though I will restrict my discussion to the U.S. locations, because I am not familiar with Canadian law).

You should form the corporation in one of the states where a founder is located. Please see Why (not) incorporate in Delaware? and Why (not) form an LLC in Nevada? You should seek the services of a tax advisor who is familiar with multi-state corporate issues right away.

Disclaimer: This post does not constitute legal advice and does not establish an attorney-client relationship.

answered Mar 29 '10 at 13:21
Dana Shultz
6,015 points

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Incorporation Location