WHERE IS YOUR BUSINESS ‘TAX HOME?’ — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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Q: I’m starting an Internet-based business with my brother. Since our state of incorporation can be virtually anywhere, should we incorporate in Delaware as our home state for income tax purposes? D.J., Boulder, Colo.

A: No. Large companies often incorporate in Delaware for legal reasons, but that has no impact on federal income
taxation. Talk to a business attorney and a tax pro to see if it’s necessary for your situation. Tip: Regardless of your
home state, you may face state sales tax liability if you have customers or engage in activities in other states.

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