Form A Llc In Nevada
[mage source="flickr"]Form A Llc In Nevada[/mage]
Best Place / Way To Form LLC?
My home resident state (MA) wants $500 to file the LLC application, plus an additional $500 per year to maintain the LLC (an “Annual Report” with the state).
It is my understanding that an LLC can be legally be formed in a state which the company has no partners or holdings in, as long as there is a person of record (lawyer, etc) in that state to sign and maintain the filing.
Is it worth filing in another state (have heard Nevada and Delaware are good choices)? What are the downsides and caveats to this? Are there any reputable and affordable places to file with (LegalZoom will take 20-30 days)?
I have considered filing a DBA, however, it offers minimal protection, which would be beneficial, but would go that route if filing an LLC out of state poses problems. This LLC is not going to be highly active – around $10k of revenue / year with limited transactions.
Here’s the thing. If you form your LLC in another state, you still may be on the hook in your own state since you will be doing the bulk of your business there. This is how California (the worst state to do business) does it. In essence, you are going to be taxed by both (if MA is like CA). A $500 annual fee for “maintaining” an LLC is obnoxious in my opinion, especially when you consider that it’s only $25 in states like Colorado. Some states just don’t get it. Regarding Delaware or Nevada, they are NOT the best places to do business according to a recent (2008) poll conducted by CNBC. In fact, they ranked 41 and 45 respectively (remember, there are only 50 states). To see a full breakdown of the ranking of all 50 states, go to:
http://www.cnbc.com/id/25501924/
Good luck.