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Q&A: Incorporating in other states
I hear radio ads and see things on the internet that say there are advantages to incorporating in states that don't levy income taxes. Is that true?
Q: I hear radio ads and see things on the internet that say there are advantages to incorporating in states that don't levy income taxes. Is that true?
A: For a physician, unless you're practicing in that state, the answer is no. You must incorporate as a professional corporation, not a regular corporation, in order to practice medicine. That must be done in the state in which you practice. You're also taxed in the state in which you practice, not the state where you're incorporated.
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