How to choose the right State for the business before amending its Articles

Starting Off on the Right Foot: The Business of Business

Politicians often boast about incentives they can provide for businesses to flourish. But, beyond just tax credits, there are things that owners can do to give their business the best start. Find out which state works best for the businesses before filing.

What to Know Before Filing

Silicon Valley is such a big attraction for tech-based companies, and not only because the businesses will be “in good company”. There are a score of perks that companies can enjoy that nurture and befit the growth of these businesses for the long term. From the ease with which companies can file articles of incorporation (i.e. how much red tape exists?) to setting up payroll accounts and tax credits available to particular business types, choosing the right state is just as much a part of smart filing as actually going through the process. If the company plans to set up stocks or shares, certain states (like California) can give particular companies options on the weight of those shares (for example, setting up “super-voting” shares, where the worth of the share is twice the value and allows CEOs to retain controlling power).

Amendments to Articles

When filing for amendments to articles, regular changes–like name changes, services or products, or changes to directors and C-suite executives–can all be filed at the same time. Consolidated changes filed all at once are known as “restated” articles of incorporation. Usually, businesses file for incorporation just once: federally. However, depending on where their LLC is located and the type of business they’re operating, they’ll have to file taxes federally as well as on a state level. Keep in mind that even solo operations (like freelancers), who have no employees and operate alone can choose to file for incorporation to better distance business liability from their personal finances.