|
If you?re a U.S. resident the best place to start your LLC is the state you reside in, and here is why:
1. You will have to hire an agent in the other state to receive your official notices from the Secretary of State?s Office and court summons. This will probably cost a couple of hundred bucks a year.
2. If you LLC gets sued or if your LLC wants to sue somebody you will have to travel to that state to defend yourself or file suit.
3. As far as avoiding state income taxes if you register in Nevada or Delaware that won?t really work if you actually operate your business out of another state in the U.S. If you have a physical presence in another state you?re a required to file a foreign corporation notice with your home state?s Secretary of State?s office. That will trigger state taxation. Nowadays it?s very hard to get by not doing this because if you want to open a bank account for the LLC in your home state the bank will require this. Furthermore, since we are talking about an LLC rather than an INC most people chose to have their LLC treated as a partnership meaning that the LLC doesn?t pay any income taxes anyway, but the taxation passes on to the partners and wherever they actually reside will control the taxation rate. Keep in mind partnership LLCs are still required to file a tax return in the state they are organized in so you?re probably just creating extra paperwork and costs for yourself by incorporating in a state other than the one you live in.
BTW: In most cases your state?s secretary of state?s office will provide everything you need to start an LLC in your home state so there is no need to pay one of those services to do it for you.
|