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I was under the impression that if you want to start an LLC, you do it in Delaware if you ever want to upgrade to a C corporation or be acquired, in Nevada if y
by logfromblammo 10y ago
I was under the impression that if you want to start an LLC, you do it in Delaware if you ever want to upgrade to a C corporation or be acquired, in Nevada if you worry about taxes, in Wyoming if you want privacy, or in New Mexico if you want anonymity.
Then you register it as a foreign corporation with your state's Secretary of State.
Incorporating in your own state is unnecessary, unless you have a fixed business location that is always staffed during business hours, and are keen on avoiding registered agent fees.
Just incorporate in Delaware. Administration of U.S. corporations is their cash cow. They can't afford to make the process too burdensome, or some other state will eat their lunch.
- pbarnes_1 10y agoNevada is over-rated due to nexus and residency laws. You have to really know what you're doing and be willing to actually live there. If you're CA based, the FTB will find you. They're 10x more ruthless than the IRS.
- macNchz 10y agoNY state imposes the LLC publication requirement on foreign as well as in-state businesses, so that particular strategy, while valid for the stated reasons, doesn't avoid the big up front cost of starting an LLC in New York.
- soared 10y agoPeople say that a lot. The truth is, if you don't get acquired/ipo it won't matter. If you do, you'll hire an expensive lawyer anyways and they will move it and handle anything related. Its easier just to do it in your own state. If it ever really matters, you'll have a ton of money and an expensive lawyer to deal with it for you.