If i want to start an online business, should I incorporate in the state having better tax benefits?

Many people rave about great tax benefits of incorporating in WY. I live in HI and I’m planing to start an online business selling merchandise via amazon. What’s the best place to incorporate to reduce tax obligations? I heard about Puerto Rico 20/22 but do not want to live there. Is it possible to live in HI and still reduce tax obligations?

Asked on March 2, 2018 under Business Law, Hawaii


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

The taxes your business pays are based on where it is physically located and where it conducts business, not where it is incorporated: e.g. if your online business is located out of your home in HI (that's where your office is; where most work is done), you will pay HI taxes. The place you incorporate does not affect liability. To have WY taxes, you'd need to locate in WY; having seen both HI and WY, moving from HI to WY might be too high a price to pay. 

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.