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Ask HN: What is the best state to form a single member LLC
I currently have a single member California LLC (disregarded entity). I am sick and tired of paying the flat $800 a year fee and $20 every other year statement of information fee. Not to mention their processes are still mostly all mail in, with very limited online capabilities.
What state is most friendly for single member LLC's? Also, do you have to live in that state?
- siegel 9y agoAre you doing business in California? If so, you're going to pay the California franchise tax anyway. So, might as well stay as a California LLC.
- nodesocket 9y agoIf all the business is web based (customers all over the world), what is considering doing business in California? Is it based off residence? I don't have an office. I'm currently in San Francisco, but looking to move out of state to somewhere that is not the People's Republic of California.
- siegel 9y agoUntil you move, you're doing business in California. Once you move, that'll be a different story. My guess is you're not going to move to a state based on the minimum corporate tax rate :) So, once you move, it'll be easier to make recommendations as to which state is best for your LLC. Until then, I'm sorry to say you're stuck with the California franchise tax...
- kjksf 9y agoSince the cost is your main issue: you don't need LLC. You can register a name as DBA, no hassle, no fees. The most common reason people give for LLC is that it shields you from personal liability so that if you get sued, it's your company that goes bankrupt, not you. Personally I consider that a scare tactic as in: I've yet have to read a single story of a small software business where that actually happened.
- siegel 9y agoSmall software businesses get sued all the time. Those types of lawsuits don't usually get big headlines. So, that's why you don't typically read stories about it.