{"id":5368,"date":"2018-09-28T09:08:25","date_gmt":"2018-09-28T09:08:25","guid":{"rendered":"https:\/\/www.austinshortfilm.com\/blog\/incorporating-in-delaware-wont-save-you-taxes-misconception-monday\/"},"modified":"2018-09-28T09:08:25","modified_gmt":"2018-09-28T09:08:25","slug":"incorporating-in-delaware-wont-save-you-taxes-misconception-monday","status":"publish","type":"post","link":"https:\/\/www.austinshortfilm.com\/tech\/incorporating-in-delaware-wont-save-you-taxes-misconception-monday\/","title":{"rendered":"Incorporating in Delaware WON&#8217;T Save You Taxes | Misconception Monday"},"content":{"rendered":"<p><iframe loading=\"lazy\" width=\"480\" height=\"270\" src=\"\/\/www.youtube.com\/embed\/VMi8C2CO9iU\" frameborder=\"0\" allow=\"autoplay; encrypted-media\" allowfullscreen><\/iframe><\/p>\n<p>#businessadvice #corporatelaw #businesslawyer<br \/>\nhttp:\/\/cenkuslaw.com<\/p>\n<p>This is Misconception Monday, where we tackle common misconceptions in business law, business and society generally. This week, we&#8217;re touching on business law.<\/p>\n<p>You&#8217;ve probably heard that you can save money on taxes by incorporating in a different state than where you live. That&#8217;s broadly incorrect.<\/p>\n<p>You pay tax where you earn the income.<\/p>\n<p>States like Nevada and Delaware like to emphasize that they don&#8217;t charge corporate tax. But, you&#8217;re going to pay income tax where you earn the income. In fact, by incorporating in a different state, you&#8217;ll have to file as a foreign corporation and end up having to pay more filings. So, you&#8217;re really creating more work and expenses for yourself in a fruitless pursuit to pay fewer taxes.<\/p>\n<p>Now, large companies with intellectual property or intangibles like patents do stand to benefit from creative structuring; however, small and even medium sized businesses don&#8217;t see benefits by seeking to incorporate in Delaware or other, similarly attractive states for tax purposes.<\/p>\n<p>Watch the video for more detail, and contact me with any questions!<br \/>\n_____________________________________________<\/p>\n<p>For a deeper dive into  and other legal issues vital to the success of your deals and your business, visit me at:<br \/>\nhttp:\/\/www.cenkuslaw.com<\/p>\n<p>Just starting up? Check this out for my advice on startup success: http:\/\/www.thestartupshepherd.com.<\/p>\n<p>You can also reach me at:<\/p>\n<p>https:\/\/www.linkedin.com\/in\/brettcenkus<\/p>\n<div class=\"newsmag-video-container\"><a class=\"twitter-timeline\" data-width=\"600\" data-height=\"900\" data-dnt=\"true\" href=\"https:\/\/twitter.com\/bcenkus?ref_src=twsrc%5Etfw\">Tweets by bcenkus<\/a><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/div>\n<p>http:\/\/www.cenkuslaw.com<\/p>\n<div class=\"newsmag-video-container\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"orWIJjxXqe\"><p><a href=\"http:\/\/www.cenkus.com\/\">Home<\/a><\/p><\/blockquote>\n<p><iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" src=\"http:\/\/www.cenkus.com\/embed\/#?secret=orWIJjxXqe\" data-secret=\"orWIJjxXqe\" width=\"600\" height=\"338\" title=\"&#8220;Home&#8221; &#8212; Brett Cenkus\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/div>\n<p>_______________________________________________<\/p>\n<p>About me:<\/p>\n<p>My 20+ years of experience in business finance, business law and entrepreneurship have led me to believe that numbers and logic are awesome tools, but understanding human nature and emotions is the first step to business success. <\/p>\n<p>The Cenkus Law Firm provides services related to mergers &#038; acquisitions, general business issues and startups, including founders\u2019 agreements and fundraising. I also consult with entrepreneurs and have invested my own capital as an angel investor.<\/p>\n<p>From 2010-2013 I served as Chief Legal Counsel of a publicly-trade international oilfield services company. From 2001 to 2006 me and a partner founded and built Paragon Residential Mortgage. Paragon was sold to Bridge Investments in 2006. <\/p>\n<p>I hold a Juris Doctorate from Harvard Law School and a Bachelor of Arts degree in Economics from Messiah College in Grantham, Pennsylvania. <\/p>\n<p>Now, I live in Austin, TX with my wife and two kids. I enjoy reading, running, classic movies, great food and wine and some great American football.<\/p>\n<h3>More info on Incorporating in Delaware WON&#8217;T Save You Taxes | Misconception Monday<\/h3>\n<div class=\"ss-local-rss\"><div class=\"rss_header\"><h2><a href=\"https:\/\/cn.bing.com\/news\/search\/?q=Incorporating+in+Delaware+WON%27T+Save+You+Taxes+%7C+Misconception+Monday&amp;qft=sortbydate%3D%221%22&amp;format=rss\" rel=\"nofollow\" class=\"rss_title\">Incorporating in Delaware WON'T Save You Taxes | Misconception Monday - BingNews<\/a><br \/><span class=\"rss_description\"> Search results<\/span><\/h2><\/div><ul>\n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=66362f51d8f64806a7b95ad07ce8cf71&amp;url=https%3A%2F%2Fwww.nhl.com%2Fnews%2Fnew-york-rangers-won-t-let-presidents-trophy-hinder-cup-quest&amp;c=11269531929027529295&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tRangers won't carry weight of Presidents' Trophy in Stanley Cup quest\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>but you don't have to stretch too far to find some comparisons between the New York Rangers of this season to the Boston Bruins of last season. Each won the Presidents' Trophy, awarded to the team ...<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=66362f51d8f64806a7b95ad07ce8cf71&amp;url=https%3A%2F%2Fwww.rollingstone.com%2Fmusic%2Fmusic-news%2Fsia-paris-hilton-fame-wont-love-you-single-1235007246%2F&amp;c=17225115447979629640&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tSia Taps Paris Hilton for Self-Reflexive Single \u2018Fame Won\u2019t Love You\u2019\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>Paris Hilton knows a thing or two about fame. The reality show star and singer has lent her vocals to Sia\u2019s new single, \u201cFame Won\u2019t Love You.\u201d The reflective, anthemic song will appear on ...<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=66362f51d8f64806a7b95ad07ce8cf71&amp;url=https%3A%2F%2Fnbc-2.com%2Farticle%2Fhow-you-can-help-save-the-bees-in-swfl%2F60540578&amp;c=762205345496796567&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tHow you can help \u2018Save the Bees\u2019 in SWFL\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>I NEED THE BEFORE YOU GET ANY CLOSER. &gt;&gt; DENNIS RIGGS IS KNOWN AS THE HONEY BEE MAN. YOU'RE ABOUT TO SEE WHY HAVE FACIAL RECOGNITION. SO THEY RECOGNIZE MY FACE, BUT THEY DON'T RECOGNIZE YEARS.<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=66362f51d8f64806a7b95ad07ce8cf71&amp;url=https%3A%2F%2Fseekingalpha.com%2Farticle%2F4684496-if-alto-ingredients-couldnt-make-money-in-2023-it-likely-wont-in-2024-either&amp;c=2452536120219547321&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tIf Alto Ingredients Couldn't Make Money In 2023, It Likely Won't In 2024 Either\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>For a good chunk of 2023, it was an excellent landscape for companies like Alto as corn prices tanked at the start of the year while ethanol prices didn't drop until much later. While some peers ...<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=66362f51d8f64806a7b95ad07ce8cf71&amp;url=https%3A%2F%2Fwww.fox17online.com%2Fnews%2Flocal-news%2Fmichigan%2Fsomeone-in-michigan-won-lucky-for-life-was-it-you&amp;c=16400382950499197816&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tSomeone in Michigan won Lucky for Life! Was it you?\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>We\u2019re told the winner may collect their prize in the form of $25,000 per year or the greater of 20 years or life. Alternatively, they may receive a lump-sum payment of $390,000. The winner is ...<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=66362f51d8f64806a7b95ad07ce8cf71&amp;url=https%3A%2F%2Fwww.slashgear.com%2F1553858%2Fways-old-phone-could-save-money-2024%2F&amp;c=4454967766793734560&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\t10 Ways Your Old Phone Could Save You Money In 2024\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>If you're a smartphone enthusiast, upgrading to the latest flagship model is likely to be an irresistible pull for you. But with prices for top-of-the-range models shooting through the roof, you ...<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=66362f51d8f64806a7b95ad07ce8cf71&amp;url=https%3A%2F%2Fwww.independent.co.uk%2Fvoices%2Frishi-sunak-smoking-ban-conservatives-election-b2530140.html&amp;c=16824101733474005509&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tCongratulations on the smoking ban, Rishi, but it won\u2019t do you any favours\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>Rishi Sunak offered his MPs a free vote in an attempt to dilute the impact of the Tory rebellion, but his ploy didn\u2019t work (PA) The prime minister won\u2019t reap any benefit from his legacy ...<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=66362f51d8f64806a7b95ad07ce8cf71&amp;url=https%3A%2F%2Fwww.usatoday.com%2Fmoney%2Fblueprint%2Fbusiness%2Fbusiness-formation%2Fwhy-incorporate-delaware%2F&amp;c=12328432321997156084&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tWhy incorporate in Delaware? Pros and cons in 2024\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>Most small companies won\u2019t benefit from ... Finally, you must submit an annual tax report and pay franchise taxes by March 1. Incorporating your business in Delaware follows the same general ...<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=66362f51d8f64806a7b95ad07ce8cf71&amp;url=https%3A%2F%2Fwww.si.com%2Fmlb%2Fastros%2Fnews%2Fnew-call-up-wont-save-houston-astros-from-pitching-woes-tyler9&amp;c=13694988907517428366&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tNew Call-Up Won't Save Houston Astros From Pitching Woes\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>Desperate times call for desperate measures. In need of a spark, the slumping Houston Astros called up former top pitching prospect Forrest Whitley on Tuesday to give their pitching staff a boost.<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=66362f51d8f64806a7b95ad07ce8cf71&amp;url=https%3A%2F%2Fwww.gamesradar.com%2Ffallout-tv-show-poster-hidden-easter-egg-reference%2F&amp;c=5074369326908977150&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tThere's a pretty neat Fallout Easter egg hiding in the poster, and you won't be able to unsee it\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>The Fallout TV show Easter eggs keep coming and coming as viewers pour over all the details in the video game adaptation. However, this latest one has us stumped as it\u2019s been under our noses ...<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=66362f51d8f64806a7b95ad07ce8cf71&amp;url=https%3A%2F%2Fwww.theglobeandmail.com%2Fbusiness%2Fcommentary%2Farticle-higher-capital-gains-taxes-wont-work-as-claimed-but-will-harm-the%2F&amp;c=10722231743742667661&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tHigher capital gains taxes won\u2019t work as claimed, but will harm the economy\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>research suggests it won\u2019t work as planned. Currently, individuals and businesses who sell a capital asset in Canada incur capital gains taxes at a 50-per-cent inclusion rate, which means that ...<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=66362f51d8f64806a7b95ad07ce8cf71&amp;url=https%3A%2F%2Fjalopnik.com%2F2025-hyundai-ioniq-5-n-is-so-fun-to-drive-you-won-t-car-1851412027&amp;c=15088154358642623309&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\t2025 Hyundai Ioniq 5 N Is So Fun To Drive You Won\u2019t Care That It\u2019s Electric\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>you\u2019re not alone. Arguably, Hyundai doesn\u2019t know, either. Typically automakers develop a customer profile for a new car, which gives us a little insight into what kind of person it believes ...<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            <\/ul> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>#businessadvice #corporatelaw #businesslawyer http:\/\/cenkuslaw.com This is Misconception Monday, where we tackle common misconceptions in business law, business and society generally. This week, we&#8217;re touching on business law. You&#8217;ve probably heard that you can save money on taxes by incorporating in a different state than where you live. That&#8217;s broadly incorrect. You pay tax where you [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5369,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[9],"tags":[2421,2420,2318,1576,2422],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/www.austinshortfilm.com\/wp-content\/uploads\/2018\/09\/VMi8C2CO9iU.jpg","_links":{"self":[{"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/posts\/5368"}],"collection":[{"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/comments?post=5368"}],"version-history":[{"count":0,"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/posts\/5368\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/media\/5369"}],"wp:attachment":[{"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/media?parent=5368"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/categories?post=5368"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/tags?post=5368"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}