I currently live in Louisiana and I hear all of the time about people that run businesses in one state, yet the incorporate in another state. I have a financial company that is internet based and does business nationally. In Louisiana there is a state income tax and it would really help me to avoid that extra tax. I must be clear in saying that I have no problem paying taxes and I am not looking to do anything illegal or for that matter even questionable. Can anyone give me some sound advice from either what they have done or from their professional knowledge? At this time moving is not an option, but it could be in the future.

If you incorporate in another state, you will need to have a registered agent in that state or an office. There are services who can do this for a fee. Nevada and Delaware are popular states in which to incorporate. You may still need to register your corporation in Louisiana. If you can do your banking and other business with an out of state address, you may be able to avoid the taxes in Louisiana. Keep in mind that you will have to pay corporate taxes in the state of incorporation, such as franchise and excise taxes. You may want to investigate further before making your decision. If I were you, I would consult with a tax lawyer or CPA in your home state. They could best advise you about local laws.