Question

Except for states like Delaware and Nevada, what creates a disadvantage to incorporating?

Answer 1

Incorporation comes with certain disadvantages, such as government regulations, high taxes, limited shareholder say, and expenses.

Step-by-step explanation:

Incorporation comes with certain disadvantages, aside from states like Delaware and Nevada that offer favorable conditions. Some of the drawbacks of incorporating include:

1. The rules and regulations set forth by the government for corporations.
2. The high tax burden that corporations must pay.
3. The limited say shareholders have in the operation of the business.
4. The expensive cost of setting up a corporation.

These factors can create disadvantages for entrepreneurs who are considering incorporating their business.