Incorporate S-corp in Nevada?

[ffuser1]

Looking to incorporate and I hear about Nevada/Delaware possible savings but can't find anything definitive. Living in Colorado and will be working in Colorado and Nevada. I would pay taxes to Colorado on income earned in Colorado and to Nevada for income earned there, correct? Are there tax benefits or ways to avoid/reduce certain state taxes by incorporating an S-corp in Nevada?

 

Thanks

[jfoxcpacfp]

ffuser1 wrote:

Looking to incorporate and I hear about Nevada/Delaware possible savings but can’t find anything definitive. Living in Colorado and will be working in Colorado and Nevada. I would pay taxes to Colorado on income earned in Colorado and to Nevada for income earned there, correct? Are there tax benefits or ways to avoid/reduce certain state taxes by incorporating an S-corp in Nevada?

 

Thanks

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No, this is a common myth (the article references CA, but is applicable to most any state with an income tax code). Unless you are doing business in NV or a large corporation (think Fortune 500), there is no good reason to incorporate in NV. You will pay CO taxes on your income and make your life more complicated as you will now own a foreign corporation doing business in CO.