Posted by John Corey on April 20, 2006 at 09:16:46:
Some will claim that the legal entity should be in NV or DE.
Independent of where the entity is set up you will likely have to register or otherwise file with the state you do business in so they know about the legal entity. Foreign corporation or similar label is used to indicate a company that is not organized and registered in the state in which it operates.
In CA the fee for being from another state is the same fee as being organized in CA. Hence you will pay twice for the CA example.
More important than ‘which state’ is to operate the business correctly so that people can not claim later that the company should be pierced given the failure to meet the rules concerning required practices.