Can someone answer a question about incorporating a business?

Question

I've been reading about incorporating in Delaware, it's advantages and stuff. I will be conducting business in Texas, though. What I don't understand is if by doing so, will I have to file taxes in both states or just in Texas? Would I be better of incorporating in Texas alone?

Answer 1

I am in California and own a Delaware Corporation.  I had to file as a foreign corporation in California.  Texas probably has a similar rule.  I pay taxes in California, but not in Delaware as Delaware doesn't tax out of state earnings.  You still have to file a form with Delaware and pay them a minimum fee each year.