Where to Form LLC for Online Business? | Best State for LLC Online Business

hey this is attorney elizabeth potts weinstein and today we're going to be talking about where you should form your llc for your online business so when we're looking at where you should form your llc for your online business i'm going to assume that either you the owner are located here in the united states or you're doing business in the united states because i'm answering this question for llc's or potential llc's in the united states [Music] so one thing to think about as an online business is that even if you do all your business online you sell your products and services via a website or some other online marketplace you do everything by email you don't have a physical office where anybody goes to you everybody works from home you still have a location for your business that's weird to think about because you're completely online and you may think of websites and online as not being located anywhere but the thing is every business has human people who work there the business may bish be you the owner you're the only owner there's no employees it's just you so one of the places that your business is located is where you're located another aspect can be if you have other business partners if you have employees if obviously if you have an office but even if you have employees who work from home you may be shipping from a location that's actually your location so nobody can come to a retail space to buy your products but you have a warehouse that you ship them from that could be your location also you're going to have some kind of mailing address because you need to have something to give the irs you have something to give the bank you have a place where you have a banking relationship all those potential places may be your nexus for where you're located so if you the owner are located here in the united states in some state in the united states most of the time it's going to make sense to to form your llc in the state in which you're located and the reason is is that if you form your llc in a different state in nevada or wyoming or delaware or wherever it is and you're not located there you're going to most likely need to file paperwork in your own state as a foreign llc so it's just costing you more paperwork more money more ongoing things you have to file and it's just a lot simpler to form your llc in your own state now if you have business partners who are located in other states you may need to just pick one that is the llc location that has the fewest fees the least amount of complexity [Music] now if you're not really located anywhere in particular perhaps you're traveling around inside the united states or even traveling around outside the united states or you've never even been to the united states you're located in a completely different country but you mostly do business inside the u.s so it makes sense for you to form your llc here especially for banking purposes in that case you can pick what state you're in most of the time i recommend my clients pick nevada because as of the time that i'm recording this the fees they're not super low but they're known you don't have to do publishing requirements like you do in some other states you can do all the filing online and it's relatively straightforward to get a local address if you pick a different state than that the expenses might be more you might have to do publishing requirements it can be a big headache to get it at local address that counts that can be an issue in wyoming for example and you may end up paying a lot more in taxes because nevada doesn't have income tax on businesses there's one situation where creating an llc may not make sense for you if you're a business owner who is planning to pitch vc venture capital is planning to get a lot of outside investors it may make more sense for you to form a corporation in delaware than an llc anywhere else because even though the startup costs will be a bit more and the ongoing costs will be a bit more investors like delaware corporations because they're standardized there's a lot of standard forms and they just understand how everything will work when they give you their money again this is attorney elizabeth potts weinstein if you have any questions about where to form the llc for your online business you can go ahead and ask them below in the comment section and i'll try to point you in the right direction if you found this video helpful please hit the like button and subscribe if you'd like any more legal tips for online business owners thanks a lot you guys bye-bye [Music]

Channel: Elizabeth Potts Weinstein

Views: 9,797

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Id: kZ6dlfeI5vQ

Length: 5min 33sec (333 seconds)

Published: Wed Sep 23 2020