Dear Lee,

There are several differences between incorporating in Nevada or in Delaware, but they all boil down to the following:

Both states offer very friendly business laws that give the owners of the companies incorporated in those states great liability protection. Delaware has more developed complex business law and very sophisticated state courts, which is why a lot of large companies and companies that want to attract venture capital are formed in Delaware. Nevada offers better state tax conditions and an option to remain anonymous by using nominee officers.

The fees for forming a company in Nevada are much higher than Delaware, however. You should also read our detailed comparison of incorporating in Delaware versus in Nevada. And please consider Wyoming as an option. It offers all of the advantages of Delaware and Nevada plus more.

And finally, one huge (but less known) advantage that Delaware has over all other states is the fact that any licensed US attorney can practice Delaware law, while other states require admission.