Where to Incorporate? How do I get a U.S. Tax ID Number (FEIN)? Small Business FAQ

Where should I incorporate?

You may incorporate in any state regardless of where your business is physically located. Incorporating in the state where you reside is usually the best choice. Delaware has also been a favorite due to the state’s extensive case law governing corporate activities and relatively liberal incorporation requirements. However, most states have now enacted incorporation statutes similar to Delaware. Also, if you incorporate in a foreign state (other than where you reside) you will have to register your business with that state and pay income taxes in accordance with the regulations of that state.

How do I register my business with the U.S. Internal Revenue Service (IRS) and obtain a Federal Employee Identification Number (FEIN)?

Upon the formation of a new business entity, the business must obtain a tax identification number (the FEIN) registering the new business with the IRS. The FEIN may be obtained on the internet at http://www.irs.gov. It is strongly recommended you speak with a legal or tax professional before filing with the IRS for a FEIN.

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