Short Answer: Most small businesses should form in the state where they primarily conduct business.
Why It Matters: Although states such as Delaware offer advantages for certain businesses, particularly those seeking outside investors, many small businesses gain little benefit from forming there and may create additional filing obligations and expenses.
Common Mistakes: Assuming Delaware is always the best choice, and overlooking foreign registration requirements.
Michelle's Bottom Line: Form your business where it makes the most practical and financial sense for the way you actually operate
