LLC formation. What state should I do this?

[aknowhow78]

Hi everyone,
I have 3 years to go til 30 years of service (AD) and looking at a new business venture with my sister. We want to start a relocation business serving Ghana. We are talking to several US companies look to send people there for short term work. My sister lives in DC and I am stationed in MD but have Florida residence. This business can be conducted anywhere ( that is work from home) but require visiting clients and networking for new clients ( travel) which my sister will be doing until I retire.

We know we need to form an LLC for this business. I am seeking help with the smart folks here, as to which state we should set up the LLC and why please?
Any thoughts and consideration we should have in terms of taxes? Appreciate any advice you may have.
Thanks
Nana

 

[kcowan]

Hi everyone,
I have 3 years to go til 30 years of service (AD) and looking at a new business venture with my sister. We want to start a relocation business serving Ghana. We are talking to several US companies look to send people there for short term work. My sister lives in DC and I am stationed in MD but have Florida residence. This business can be conducted anywhere ( that is work from home) but require visiting clients and networking for new clients ( travel) which my sister will be doing until I retire.

We know we need to form an LLC for this business. I am seeking help with the smart folks here, as to which state we should set up the LLC and why please?
Any thoughts and consideration we should have in terms of taxes? Appreciate any advice you may have.
Thanks
Nana

I would recommend Delaware or Nevada. That is for corporations. Not sure about LLCs

 

[CaliKid]

Depends on your goal. In theory, if you want protections of state law, you need to be registered in all the states you do business.

 

[Ronstar]

Like kcowan says above, I had heard Delaware or Nevada. I was a member of an Illinois LLC that sold real estate in Illinois and 1031'd in Florida without a problem.

FYI - Legalzoom says Nevada, Delaware and Wyoming

https://www.legalzoom.com/articles/starting-up-which-state-to-file-your-llc-in

 

[kcowan]

When I asked my CFO the reasons for both, the answer was that the reporting requirements to shareholders was easiest in those states. May not be meaningful to an LLC. But why not do it just in case?

 

[Sunset]

Plus in Nevada you can hide your registration of the LLC from your name and address. So anyone looking it up only see your agent.

Note, get the agent first, then register the LLC as you will be putting the Agent name in the LLC registration.

The big one to avoid is CA, unless you like taxes.

 

[Scuba]

I've always heard Nevada is best, but this is an area where I'd seek help from an attorney.

 

[CaliKid]

Plus in Nevada you can hide your registration of the LLC from your name and address. So anyone looking it up only see your agent.

Note, get the agent first, then register the LLC as you will be putting the Agent name in the LLC registration.

The big one to avoid is CA, unless you like taxes.

Unless you live in CA because CA will treat you as doing business in CA and you have to register your LLC in CA and pay your $800 a year. Even if the actual business is not done in CA this is true. Horrible law in my opinion.

 

[aknowhow78]

Like kcowan says above, I had heard Delaware or Nevada. I was a member of an Illinois LLC that sold real estate in Illinois and 1031'd in Florida without a problem.

FYI - Legalzoom says Nevada, Delaware and Wyoming

https://www.legalzoom.com/articles/starting-up-which-state-to-file-your-llc-in

Thank you much for this.

 

[aknowhow78]

When I asked my CFO the reasons for both, the answer was that the reporting requirements to shareholders was easiest in those states. May not be meaningful to an LLC. But why not do it just in case?

Yes. I appreciate the advice