Why Do Some Businesses Incorporate in DE or NV Instead of Their Home State?

In Delaware, it is not a requirement to be a U.S. citizen or a Delaware resident for a Delaware LLC formation.     The names and addresses of the initial members or managers do not currently have to be listed on a Delaware LLC's formation document.Delaware has no sales tax, corporate income tax or personal or intangible property taxes.      An LLC pays a flat, low franchise tax fee in Delaware, and no annual report filing is currently required.      State fees for a Delaware Limited Liability Company formation are relatively low.

In Nevada,it is not a requirement to be a U.S. citizen or Nevada resident for a Nevada LLC formation. Nevada has no franchise tax or personal or corporate income taxes. Nevada has minimal reporting and disclosure requirements.
In addition, a business can incorporate in DE or NV and qualify to do business in other states, too. Further, there are minimal annual fees and requirements to maintain a LLC status in Delaware and Nevada. These tax and legal advantages do not exist in many other states, and only in these combinations in DE and NV. Consult your attorney about the risks and benefits of incorporating your business in these two states.