Do you have to live/work in the same state that you incorporate?

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Question:
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Category: Business Law
Location: NJ
Subject: Forming a Corporation

Question: Do you have to live/work in the same state that you incorporate? So, If I were to buy/rent a mailbox from a UPS store (the mail box would have a street address) would I be able to incorporate in a different state from where I live simply by using that address as the corporate address? This question comes from the fact that I want to start an e-commerce website so there wouldn't really be a brick and mortar store. I currently live and work full time in NJ but if I file to incorporate a business in say Delaware or any other state that has more favorable tax structure, would I then have to file a Non-Resident state income tax in Delaware?


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Reply:
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Category: Business Law
Location: NJ
Subject: Re: Forming a Corporation

No. As long as you have a local registered agent and registered office, you do not need to live or work in a state to set up a coporation or LLC. Nevertheless, you will be responsible for income tax on salary payments and pass-through income. Most likely, your business should be a limited liability company rather than a corporation.

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