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FWIW, as of 2021, the first year’s franchise tax fee is now free: https://www.llcuniversity.com/california-llc/annual-llc-tax-exemption-ab-85/ https://www.llcun
by borski 5y ago
FWIW, as of 2021, the first year’s franchise tax fee is now free: https://www.llcuniversity.com/california-llc/annual-llc-tax-exemption-ab-85/ https://www.llcuniversity.com/california-llc/annual-llc-tax-...
(But I agree with you, and would file an LLC in DE or elsewhere, unless I plan on raising funding in which case it wouldn’t be an LLC but a DE C-Corp)
- deleted 5y ago[deleted]
- gunapologist99 5y agoWyoming. Low fees, no taxes; it trumps DE in every way except investability (and perhaps the ecosystem, but it's getting there fast)
- devoutsalsa 5y agoIsn’t the main reason people like Delaware because the corporate law is very well understood? There’s case law going back hundreds of years. What does Wyoming offer that trumps that?
- borski 5y agoThis is correct. That’s why people pick DE.
- athms 5y agoAll limited liability entities doing business in California must pay the franchise tax. Also, the first year waiver is only for domestic companies, those organized in California. For a California resident trying to escape the expense, you are going to spend more money by creating your LLC in another state.
- borski 5y agoGood point!