Hey guys I live in Las Vegas and I'm looking to form an LLC for a web business.
However many have told me that the best place to form an LLC is in Delaware.
Another friend advised me to go with Florida as it is more tax friendly
I'm on legal zoom now and tying to decide. Another question I have is , do I need an address when forming the LLC? Like if I wanted to form it in Florida or Delaware , how do I go about it?
also, when comes time to file taxes, Would I have to travel to Delaware or Florida to file taxes?
please help, thank you

Since you already live in Nevada, why don't you organize your LLC there? Nevada has favorable business laws that are similar to Delaware. You don't even need legal zoom. Just go here:

http://nvsos.gov/index.aspx?page=415

The form is online. It's easy, and there are help guides to explain it to you.

Also, the advantage of going to Delaware isn't as significant in your case since you're forming an LLC. It would be different if you were forming a corporation, but that would just be silly.

Yes I have gone on their site to do an entity search but didnt think it was easy to file.
thanks will just form in nevada

I was also wondering about if there were any benefits to forming an LLC in a state other than the one you are doing business in, or if any complications can result because of that. I am forming an LLC to do business in NY, and will need licenses in NY; any way to form it in another state?

Unless you are doing business in that state no.

You people are confusing a corporation with an LLC...****ch different.

If you don't do any business in Delaware, then you wouldn't want to form an LLC there which would have zero benefits and cost you taxes and fee's, and you would have to file one in the state you ARE doing business in anyways.

If you are an internet based company that does business all over, then forget what I just said as there might be benefits in filing your LLC as an entity in another state such as Nevada or Delaware.

Almost none of this is accurate. Please don't follow this advice. You don't have to organize an LLC in every state you're doing business.

IMO, it's a very good idea to organize an LLC because it provides a shield against personal liability.

I also think it's much better than a corporation. Profits are passed through to the owners so the LLC doesn't pay taxes. It's far easier to organize, and the complexities of operating a corporation (articles of incorporation, shareholder meetings, etc.) aren't present.

As far as organizing in a particular state, there may be some benefit to be had (ex: Delaware is the only state with a Court of Chancery, which is kind of like a "business court").

The possible downside is that in the off chance you become involved in a dispute, the law of the state where you organized will likely control. This means getting a lawyer in another state, going to court in another state, etc. Also, there is something to be said for "home court advantage" -- going to trial in your own state.

As for me, I just organize in my own state. It only takes a few minutes and a credit card on the Secretary of State's web site.

Delaware w/ LegalZoom you can use their address and it will be way cheaper than having a lawyer do it for you.

Jesus man, really?

You shouldn't talk about something that you know nothing about and discredit another person.

I happen to own a business, and we formed in our primary state where we do business. We recently expanded to another state and you are REQUIRED by law to file as an LLC if you are doing business in that state, and even though you are formed in another state, you apply for a "foreign LLC" in any other states you enter, which is REQUIRED BY LAW to do business in that state, and it is every state. Look it up. I wouldn't have done so if it was not required.

The states want to know who is doing business in their jurisdiction as well as tax you where applicable.

By "file as an LLC", do you mean you were required to form a separate LLC by filing articles of organization with the state, or do you mean that you were required to obtain a certificate of authorization from the secretary of state in order to operate in that particular state as a foreign limited liability company?

If it's the former, I'd be interested to hear which state requires foreign LLCs to organize as a completely new LLC to operate within their borders. If it's the latter, then it would appear that you are the one who has no idea what they're talking about.

Also, OP indicated that he is starting a web based business. In that case, which is what I was referring to in my post, he wouldn't have any filing requirements in any other state beyond where he organized his LLC.

File as an LLC, registering in that state as a foreign entity. Our organization is based in Texas....to do business in another state you must let that state know you plan to, and you simply submit an application, pay fee's, and get paperwork from your home state so they can verify your business is in good standing. This is not a seperate LLC, it is applying to do business in another state under that entity, but it's practically the same costs and process as filing in your original state you are organized in.

This is legally required, however there is certain distinction on wether or not you will need to do so. This information is readily available online, but basically if you are selling a product or service in that state, have an office in that state, have an employee in that state, pay sales taxes in that state, or frequent that state to meet clients or customers regularly or generate any substantial revenue from that state it is required.

i would recommend getting an actual lawyer (doesn't have to be an expensive one) and not using legalzoom. i had a really terrible experience with them trying to do the exact same thing.

also, somewhat off topic but i thought this was a fascinating listen:

http://www.npr.org/blogs/money/2012/...in-a-tax-haven

I personally wouldn't pay a lawyer to do this. It's actually quite easy and painless so unless you are doing some big complicated thing with multiple partners and investors etc. just spend a few hours doing some research and do what's necessary.

You are physically in NV, so I would file there...it's one of the best states to be formed in right there with Deleware.

If you did file in another state you would need a physical address attached to your business there. This is handled through companies who are able to provide this for you as an "agent", and can typically cost $50-$100 per year. You need a non PO box address and they will recieve any important mail for you there and make sure you recieve it.

You would not need to travel anywhere to file taxes in person should you decide to go out of state. You are local in one of the best places to set up though, so forming in Vegas where you are seems like a no brainer.

I have to agree here, although I am biased as a law student. It sounds like you are unsure about what you need to do and different business entities, i.e. LLC v. corporation, so it makes sense to pay an attorney to get this straight for you. It really should not take very long to do and you most likely can negotiate a flat fee for the service. This way you take advantage of years of training that can help you answer these questions without relying on some cookie cutter do it yourself website. Of course, this isn't legal advice, etc.

You dont need a lawyer to form an LLC. Forming an LLC is very simple and you will just need to do it online in minutes. Also, file for a tax ID from the IRS which also takes minutes.

Why you would need a lawyer?

Because if you have a partnership or just want to go over everything you need to have a partnership agreement. This is VERY important, especially at tax time when filing and sending K1's.

You should file for an LLC in the state you are in. You are taxed the same no matter what state you file in. The benefit of Deleware is for issuing stock and LLC's do not issue stock and are corporations.

Nevada is a great state for small businesses:
Not only does Nevada have zero taxes, but there are a lot of other benefits as well, including:



Nevada allows complete anonymity of the shareholders (or the members). Why is this great? Well, if they don’t know you own it, they probably won’t try to sue you for it! Except in the case of corporate fraud, what happens in Vegas, will probably stay in Vegas!

The members do not have to be residents of Nevada - or even of the U.S. for that matter.

Nevada has no I.R.S. Information Sharing Agreement. Doesn’t that say it all?

Nevada’s annual fees are normally only $125 per year. (An annual business license may be required as well which is $200/year).

Meetings of members and managers are not required to be held in Nevada. They can take place anywhere in the world!

Single-member LLCs are allowed. One person may hold all positions in the company. (This is not the case in every state!)

There is very little disclosure required. This is the main reason why anyone interested in privacy will often form their corporations or LLCs in Nevada.

Stock (or membership interest) does not need to be purchased with cash – anything of value will do, including your time and services.