c-corporationCurrently I am the state of Texas, and I was wondering is it illegal to file as a C-Corporation in another state that has better Tax Breaks?
It's not illegal. In fact it's the norm. 64% of the Fortune 500 were formed in Delware due to its business friendly climate. Delaware also happens to be the smallest state.
That being said, filing in another state does not mean you don't have to file taxes in your home state or any other state in which you have a physical presence. A corporation must file in every state in which it has nexus, regardless of which state the corporation is formed in. If you own a corporation in another state but continue to work for the corporation in Texas, you must file in Texas.
There are some additional steps you should be aware of before you start doing business. You should speak to a qualified attorney and accountant to get complete advice on your personal situation.
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