Where to Form an LLC

Home State vs. Delaware or Nevada

"Should I form an LLC in my home state, or should I choose a popular 'incorporation state' like Delaware or Nevada?" This is one of the most common questions that business owners ask before they form a limited liability company. Most small businesses form an LLC in their home state, the state where the company headquarters is located, or the state where the company conducts most of its business. Ultimately, of course, the choice is up to you. If you want to, you may choose to form your LLC outside the state in which you conduct most of your business. No matter what state you choose, we can help you form an LLC in any of the 50 states or the District of Columbia.

Advantages of Forming an LLC in your Home State

• If you plan to operate your business in your home state only, forming your LLC in your home state is typically the least complicated option.
• It usually costs less to form an LLC locally than it does to form your LLC in a different state and then also have to pay to formally register your out-of-state LLC with your home state.
• By forming an LLC in your home state, you can avoid paying franchise taxes and filing annual reports in more than one state.

Advantages of Forming an LLC in Delaware or Nevada

• Delaware and Nevada offer more anonymity for owners than many other states.
• If you don't actually conduct business in Delaware, your LLC will not be required to pay business income taxes to the State of Delaware. Similarly, Nevada has no business income tax for companies that do not do business in Nevada. Note, however, that your LLC will, in fact, be liable to register and pay taxes in any state where it does conduct business. Simply forming your LLC in Delaware or Nevada does not eliminate your obligation to register and pay taxes in your home state or any other state where you conduct business.
• Delaware has the most highly respected court system in the United States for resolving business disputes.

Doing Business in Multiple States?

Many companies conduct business throughout the U.S. and abroad. An LLC with business locations in multiple states may form an LLC in a single state and then qualify to do business in the additional states. This means that companies must formally register, file annual reports and pay annual fees to conduct business in multiple states.

Ready to Form an LLC?

Order your LLC online or contact an LLC Business Specialist at 877-261-9606 (toll-free) or 302-636-5457 to get started today. We can help you protect personal assets, gain tax advantages, and add credibility to your business in just 10 minutes.

Compare Advantages by State

View our full LLC state list for futher information.

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