If I incorporate as a LLC in another state from where I reside, what issues might I need to consider?
State/Country relating to question: Texas
the main thing is that you might have to pay an annual tax/fee in both states
Generally, when it comes to protection, every state in the US has LLC laws that provide the same fundamental LLC protection.
If you are going to run your business from your state, you are going to have to register your LLC in your state no matter what. If it is not formed in your state, then it will be registered as a foreign LLC. Any registration will require that you disclose the same information you would have to disclose if you had formed the LLC in that state to begin with.
if you form a limited liability company in another state and then have to registered it in your state, this means paying filing and maintenance fees in two states, possibly having reporting obligations in two states and maintaining a registered agent in both states. For most small business, the added administration is not worth the effort.
In 10% of the cases, forming in another state may be beneficial such as if you have investors in other states who require it, or you need a series LLC (which is only recognized in some states). If you are going to take in professional investors such as venture capitalists, you may want to consider Delaware but in these situations, you will likely not be picking an LLC in the first place.
An LLC is designed for the small business owner who runs his or her own business. Having your LLC in your home state is the simplest and easiest method for gaining the benefits and protections of a limited liability company.
What is a registered agent and how do I find one
Experienced in intellectual property law
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