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This is true Because state corporate laws differ, persons wishing to incorporate may look for the state that offers the most advantageous tax or other provisions.
State corporate laws
The primary law regulating corporation management and activities is state corporate law. Each state adopts its own corporate statutes and creates its own common law to interpret those statutes. In general, shareholders who want to file lawsuits to enforce their rights must do so in accordance with state law.
State laws are generally responsible for establishing and regulating corporations, and many of them adopt the ABA's Model Business Corporation Act.
Corporate lawyers advise corporations on their rights and obligations in order to ensure that all of their transactions are compliant with the law. In essence, they strive to ensure that businesses make decisions that are both beneficial and legal.
Given that it imposes no taxes on corporation income, corporate shares, franchises, or personal income, Nevada frequently tops the list of places to incorporate for tax reasons.
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