Where Should I Form My LLC? Here’s how I decided.
(The following is for informational purposes and is not legal, tax, or financial advice)
In keeping with my vision to help you with continuing blogger education, today I want to provide you with some actionable information about starting an LLC for your online business.
When you set up an LLC (Limited Liability Company) for your business, you have many decisions to make. One of those is choosing the state you form your LLC in. For most, your home state is usually the obvious and best choice. Yet you still hear about Nevada, Wyoming, or Delaware. Why? Favorable treatment of corporate income tax and affordability are common explanations. But does this apply for small business owners? In most cases, corporate taxes don’t apply since, by default, LLCs don’t pay corporate taxes.
Forming your LLC should be straightforward and as non-complicated as possible. Think about this:
- If you don’t live in the states mentioned above, and you form your LLC there, you’ll have to register your LLC as a “foreign LLC” in your home state. You may also end up paying for a Registered Agent in both states as well as paying annual fees in both states.
- Do the disadvantages of forming an LLC outside of your home state outweigh any advantages?
- How do you determine your home state?
If your head hurts from thinking about this, you should seek out a reliable source of information. A lawyer who specializes in forming a business would be an obvious choice. If you look online you’ll find many websites with information, but these may or may not be useful to you.
I’d like to point you to one I found extremely helpful when I started my business: LLC University. They are “not driven by profit, but rather by empowering entrepreneurs through free education”.
LLC University® was founded by Matt Horwitz. One of it’s strong points is the free LLC courses that teach people how to form LLCs (step-by-step) in all 50 states. There’s also a very useful Learning Center.
This site answered so many questions as I started my business and I’m certain they’ll be useful to you as well.
Check out the helpful article written by LLC University®: where should I form my LLC.
I hope you found this helpful in making a key decision for your business. I’d encourage you to visit my Knowledge Zone for other blogging tips, and appreciate any social media shares!