If you have decided to form a LLC company, then half of the battle is won. Often decision making can be a tedious and time-consuming process. The next thing that you need to decide is where to form a Limited Liability Company. The advantage that LLC offers is that your company does not have to be formed in the same state as your business. There are two ways to approach this:
- You can form a LLC company in your home state
- You can form a company in Delaware, Nevada or Wyoming
For most of the small businesses, this option is considered easier and more economical. The reason is your state will want you to “re-register” your existing company that may have been formed in Delaware, Nevada or Wyoming. For example, if you had registered your company in say Nevada, and you want to open up an office in your home state, your home state will need you to “re-register” as a “foreign corporation”.
Even if you are registered as a “foreign corporation,” you are still liable to pay the same tax and fee as the in-state company. Hence, if the purpose was to avoid few taxes, you land up paying them plus the additional registration fee and other annual charges.
Delaware can be the answer to your “where to form a LLC.” It is the “silicon valley’ for large corporations. This has resulted in the Delaware law being more business-oriented. The courts are apt at dealing with intricate or difficult legal issues. This is the reason why Delaware is becoming the default choice of large companies, foreign corporations, and upcoming businesses.
Where to form a LLC? Can it be Nevada? Yes, it can.
Nevada is becoming a popular destination for small and big businesses. The advantage of forming a LLC company here is low tax and a supportive business environment.
Although there are businesses that resort to illegitimate practice to set up their LLC like giving a false impression to IRS and the home state about running the LLC from Nevada), there are fair and lawful means to benefit from setting up a business there. You need to dig deep and look right to find the solution.
Some of the benefits that Wyoming offers are lower business filling fees, lower yearly fees along with a suitable market.
The perks for setting up LLC in Delaware, Nevada or Wyoming
- Status: You company will be established in a place which is famous for setting up growing and successful businesses.
- A stable location: If you have a number of LLC in different states, your company in Delaware, Nevada or Wyoming can function as the headquarter, and save you the trouble of changing Tax ID numbers, registered addreses, etc when you create or dissolve companies.
- Because of the liability protection provided by these three states, you can have a better foothold in a risky industry.
Before you decide, it will be prudent of you to research thoroughly and come to a decision that will fulfill your business needs. Once you know where to form a LLC, you are all set to start the process of setting up a LLC.