Skip to main content

Best State to Incorporate In

Generally, it's best to incorporate in whichever state the business is located. Sometimes there's an advantage to incorporating in a more "corporation friendly" state like Delaware, Nevada, or Wyoming.

  • Nevada and Wyoming don't levy a state corporate income tax or a state personal income tax.
  • Delaware doesn't have a corporate income tax for businesses formed there and no personal income tax on non-residents.
  • Delaware has separate court system for businesses and individuals.
  • Can't escape home-state taxes.

best city​

10 cities

  • NYC, NY
  • dallas, TX
  • houston, Tx
  • austin, Tx
  • atlanta, GA
  • seattle
  • san fran, CA
  • san jose, CA
  • Los Angeles, CA
  • phoenix, AZ
  • raleigh, NC
  • Charlotte, NC
  • Washington, D.C.
  • Boston, MA
  • Denver, CO
  • Tampa, FL
  • Columbus, OH

Best US State for AI Company​

To determine the best state in the US to open an AI company in 2025, we need to consider various factors such as funding, talent pool, infrastructure, and government support.

  • California: With companies like OpenAI, Waymo, and Cruise Automation, California is a hub for AI innovation. The state has a large talent pool, with top universities like Stanford and UC Berkeley, and a well-established network of investors and entrepreneurs.
  • New York: New York is home to a growing number of AI startups, with companies like AlphaSense and Shutterstock. The state has a strong talent pool, with top universities like Cornell and NYU, and a thriving tech industry.
  • Massachusetts: Massachusetts is known for its academic institutions, including MIT and Harvard, which are leaders in AI research. The state has a strong talent pool and a growing number of AI startups, with companies like Databricks and SambaNova Systems.

Other states, such as Texas, Washington, and Illinois, are also emerging as hubs for AI innovation, with companies like Google and Microsoft having a presence in these states.

In terms of government support, some states offer incentives like tax credits, grants, and funding for AI startups. For example, the state of New York offers a tax credit for AI and robotics companies, while California has a number of programs to support AI startups, including the California AI Initiative.

Ultimately, the best state to open an AI company in 2025 will depend on the specific needs and goals of the company. However, states with a strong talent pool, infrastructure, and government support are likely to be the most attractive options.

AI Tax Credits​

New Jersey AI Tax Credits​

New Jersey has introduced significant tax incentives for AI businesses through the Next New Jersey Program, which offers up to $500 million in tax credits. This program was established to attract new investment into the state's AI industry. Additionally, the state has a Technology Business Tax Certificate Transfer Program, which allows early-stage technology and life sciences companies to sell their net operating losses and unused research and development tax credits to profitable corporations for cash. These initiatives aim to support and grow the tech and AI sectors in New Jersey.

Next New Jersey Program​