Many are set up in places like Delaware or Nevada, which offer competitive legal and tax structures. This adds to the amount of paperwork a company must prepare. This keeps a corporation from being destroyed by a key person's death, scandal or departure. Often corporations are taxed for their earnings, while its owners being taxed on investment returns. Often a company needs professional help with incorporation, specifically in filing papers and holding the first stockholders meeting.
Legal fees can be a major part of the cost of incorporation.
You company can not take a name that is the same as or deceptively similar to another corporation operating in your state. An official set of rules that specify how a business should be run. A company that can pay dividends to shareholders, which are taxed as investors' income and as corporate earnings. A business that is designated a legal entity separate from its owners and operators. A company that incorporates in Delaware to take advantage of its beneficial tax and legal structure.