What factors should a new company consider in deciding which state to incorporate?
Five Things to Consider When Choosing Where to Form Your Business
- Will You Be Transacting Business in Your Home State?
- State Tax Considerations.
- Pro-Business Legal Reputation.
- Investors and Going Public.
- Pros and Cons of Public Information and Online Filings.
The Many Variables to Consider When Choosing In Which State to Incorporate
- Formation fees. When you form a corporation or LLC, you need to pay a one-time filing fee to the state’s secretary of state office.
- Annual fees and filings.
- Franchise taxes.
- Legal and court system.
- Investors.
- State corporate income tax.
Can a LLC be registered in another state?
If you register your LLC in another state, but meet the definition of doing business in your home state (or any other state), you have to take the additional step of registering it as a foreign LLC.
Where can I find out more about forming a LLC?
LLC’s are regulated by state laws. Go to your state’s Secretary of State division and look for the Business section to find out more about starting an LLC. The information in this article is intended to be general and not to be tax or legal advice. Every business situation is specific, and laws may change.
What do I need to put in my LLC name?
Most states require that you include in your name an indication that your business is a limited liability company. In order to do this, you’ll need to include either the phrases “Limited Liability Company” or “Limited Liability”, or abbreviations such as “LLC” in your company name.
Do you need a registered agent to form a LLC?
Another important consideration is that if your LLC formation occurs in a state you are not present in, you’ll have to pay a registered agent to represent your company and accept service of process in that state, which is an additional fee and step. If you file at home, you don’t need to hire a registered agent.
