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Ask HN: Alternatives to setting up a Massachusetts LLC
I live in Massachusetts and run a small web app that brings in about $600/month.
While it's a low risk endeavor, I'd like to get liability protection to cover me in the event of some catastrophe. Setting up and operating a Massachusetts LLC costs $500/year [1], which s a lot relative to the app's income.
Setting up and operating a Delaware LLC, on the other hand, is $90 formation fee + $200/year franchise tax + $50/year for a registered agent ($250/year), which isn't much better, especially when you factor in the complexity of doing it out of state.
Have any of you been in a similar spot? Any recommendations on how to proceed?
[1] http://www.sec.state.ma.us/cor/corpweb/corllc/llcinf.htm
- davidw 15y agoI think Nevada is supposed to be pretty good. The problem, however, is that you live and do business in Massachusetts, so you would need to have something there in any event - as I understand things, at least.
- svedlin 15y agoNevada is excellent (no corporate income tax, statutory indemnification, some privacy protections). Colorado is now the cheapest place to file: $50 to form an LLC + $0.99 annual filing fee assuming you do everything online. http://www.sos.state.co.us/pubs/info_center/fees/business.html#BIZ http://www.sos.state.co.us/pubs/info_center/fees/business.ht... Most LLCs don't pay corporate income tax anyway (it passes through to the members).
- jaz 15y agoIf you form an LLC outside of MA, and that entity carries out business inside MA, you will most likely need to register as a foreign LLC with the SOTS [1] - which costs $500. Not a lawyer, but I've been through this before. [1] http://www.sec.state.ma.us/cor/corpweb/corfllc/fllcinf.htm#anchor1609293 http://www.sec.state.ma.us/cor/corpweb/corfllc/fllcinf.htm#a...
- bricestacey 15y agoAlso includes a $500/year annual report. Ouch.