If I’m starting an S-Corp in with single shareholder and it is an e-commerce company that sells just a service, should I incorporate in NC or DE?

UPDATED: Jun 13, 2017

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Jun 13, 2017Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

If I’m starting an S-Corp in with single shareholder and it is an e-commerce company that sells just a service, should I incorporate in NC or DE?

In starting the corp in N.C. Should I incorporate in N.C. or DE? Only the EIN has been completed at this point. It won’t be selling any products, just a service.

Asked on June 13, 2017 under Business Law, North Carolina

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

There really is no difference to where you incorporate: at this point, the laws pertaining to corporations (and, for that matter, LLCs) are essentially the same throughout the country. For large businesses with complicated structures or which may be involved in complicated litigation, there is a small advantage to DE: because of how many large corporations incorporate there, the DE courts are very familiar and comfortable with corporate issues, but that is not likely to be important for the company you describe. For your purposes, since you'd presumably rather not travel to DE to take advantage of their courts' expertise if sued or suing, you may as well incorporate in your own state, to make sure you can't be hauled into court in another state simply because you registered there.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption