Running a startup, you have a billion things to do. Don’t forget to add “First Organizational Meeting” to your to-do list.

This meeting should take place after the issuance (or effective date) of your certificate of incorporation. But don’t wait too long, as you have some important business to handle, such as: adopting share certificates, choosing a bank, adopting a fiscal year, and arranging for necessary permits.

After you have made the decision to incorporate, the next question is “where to incoporate?”

You can incorporate in your own state and be considered a domestic corporation, or you can incorporate elsewhere and do business in your own state as a foreign corporation.

Generally, if most of your business will be conducted in your own state, you will likely benefit more from incorporating in your own state. However, your decision should also consider each state’s relative:

(a) incorporation expenses;
(b) taxes;
(c) jurisdictional issues;
(d) rights, powers, and liabilities of directors; and
(e) the extent of the corporation’s regulation.

For some, choosing where to incorporate may be a real easy decision. But for others, it may necessiate some serious thought.

When starting a business, probably the biggest early decision an individual will make is which form of organization is best for his (or her!) business operations. Unfortunately, there is no formula nor book at Barnes & Noble that can magically determine the ‘best’ entity for your startup company.

A complex web of tax and nontax variables must be considered while balancing both the current and future. And like a snowflake, every startup’s situation is unique. Be sure to truly contemplate this decision and consider speaking with a professional…or else you run the risk of cutting too big a corner on your first big decision.