How to Know Which State to Incorporate Your Business You might not want to incorporate in a state other than the one where your company is doing business, attorney Mark Kohler says.

By Mark J. Kohler

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Some entrepreneurs might be tempted to incorporate their businesses in "incorporation-friendly" states such as Nevada or Delaware, but attorney Mark Kohler says they should think again. Instead, incorporate in the state where you live and where your company does business.

"If your state filing fees are a lot, don't think that you can avoid them by setting up in another state and hiding," Kohler says. "Too many [people] get into lawsuits where they don't get legal protection they thought they'd get because they were incorporated in the wrong state."

Mark J. Kohler

Entrepreneur Leadership Network® VIP

Author, Attorney and CPA

Mark J. Kohler is a CPA, attorney, co-host of the podcasts Main Street Business and Directed IRA Podcast and a senior partner at both the law firm KKOS Lawyers and the accounting firm K&E CPAs. He is also a co-founder of Directed IRA Trust Company. He is the author of The Tax and Legal Playbook, 2nd Edition and The Business Owner's Guide to Financial Freedom.

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