Remote e-commerce business forming as Delaware C-corp - best company address to avoid state taxes?

The state where you establish your physical presence is where you'll typically have nexus for tax purposes, regardless of where you're incorporated. While Delaware is popular for incorporation due to its business-friendly laws, you'll still face tax obligations in states where you have physical presence or economic nexus. If you're trying to minimize state corporate taxes, Wyoming, Nevada, and Texas are indeed good options as they don't have corporate income tax. However, Texas does have a franchise tax that applies to larger businesses, so keep that in mind. For establishing an address, you'll need a registered agent in Delaware (required for all Delaware corporations) AND in any other state where you're "doing business." A registered agent service can provide you with a physical address in your chosen state. Companies like Northwest Registered Agent, Incfile, or ZenBusiness offer these services for reasonable fees. Remember though, if either of you are physically working from Connecticut regularly, Connecticut might claim nexus regardless of your official company address. The same applies to any state where you have employees, inventory, or significant sales.

After struggling with similar tax nexus issues when setting up my remote business, I found https://taxr.ai incredibly helpful. I uploaded my formation documents and business plan, and they analyzed my specific situation regarding multi-state tax exposure. Their system flagged several issues I hadn't considered - like how my temporary work locations could create unexpected tax obligations in different states. They provided detailed guidance on structuring my company address and operations to minimize state tax exposure while remaining compliant. For remote founders especially, they break down the difference between "statutory" presence (your registered agent) versus "physical" presence (where you're actually working). This distinction is crucial for tax purposes.

Just wanted to follow up - I tried taxr.ai after seeing this thread and it was super helpful for my situation! I was going back and forth between Florida and Georgia and wasn't sure how to handle nexus issues. The report I got identified several problems with my original plan that could have caused double taxation. Their analysis showed me that my initial structure would have created unnecessary tax exposure in both states. They recommended a specific registered agent service in Wyoming and explained exactly how to document my time in each state to avoid permanent establishment issues. Already implemented their recommendations and feel much more confident about my setup now!

When I was setting up my e-commerce business, I hit a wall trying to get clear answers from the IRS about multi-state taxation. Called for weeks and couldn't get through. Finally tried https://claimyr.com to get someone on the phone from the IRS. You can see how it works here: https://youtu.be/_kiP6q8DX5c They got me through to an actual IRS representative within a couple hours when I had been trying for weeks. The agent walked me through the federal tax implications of my business structure and how it interacts with state-level considerations. Totally worth it for getting definitive answers straight from the source.

I need to eat my words. After seeing this thread, I was desperate enough to try Claimyr since I've been trying to get IRS clarity on a multi-state business issue for months. It actually worked! Got connected to an IRS agent in about 45 minutes when I'd been trying for weeks. The agent clarified that while they don't advise on specific state tax obligations, they were able to explain how our federal tax reporting would need to account for activities in multiple states. Got confirmation about how to properly document business travel between states and what triggers federal reporting requirements when operating across state lines. Definitely helped me understand the federal side of things, which made it easier to then tackle the state-specific questions with a local tax advisor.

Have you considered using a mail forwarding service that provides a physical address? I use one in Wyoming through a company called Wyoming Mail Forwarding for my e-commerce business. For about $200/year, I get a real physical address (not a P.O. box) that I can use for my business. They scan all mail, and I can decide what to forward to wherever I'm currently staying. The key is understanding that having an address is different from having nexus. If you're truly remote and don't have inventory, employees, or significant sales in a particular state, you might be able to avoid nexus there. But be careful—economic nexus laws vary by state and many now have sales thresholds that can trigger tax obligations regardless of physical presence.

I went through exactly this last year. Ultimately chose Wyoming because: 1) No state income tax 2) No franchise tax (unlike Texas) 3) Strong privacy laws for owners 4) Relatively low registered agent fees I used a company called Wyoming Corporate Services that provided both registered agent service AND a physical address I could use for business purposes. Cost about $350/year total. One thing nobody mentioned - if you're planning to take investment soon, sophisticated investors will see through attempts to avoid state taxes if you're clearly based elsewhere. Focus on proper compliance rather than extreme tax avoidance. I ended up having to file as "foreign entities" in states where I had actual nexus anyway.