A comparison the United States law of contracts with the law of contracts of the People's Republic of China.
A comparison the United States law of contracts with the law of contracts of the People's Republic of China.
An LLC can operate in another state. However, it's not as simple as just setting up shop. States require you to register your LLC as a foreign entity if you intend to do business there. This doesn't mean starting over but filling out some paperwork and paying fees.
You will need a Certificate of Good Standing from your home state in order to register a foreign LLC in California. The Certificate must be current (no older than six months). You can obtain a Certificate from your local Secretary of State's office.
Overall, the state in which you decide to form your LLC matters because each state has different laws and tax benefits. Picking the incorrect state – or incorrectly forming your LLC – could be detrimental to the lifespan of your business.
You don't need to change your formation state just because you are moving the business to a new state. The formation state can be any state. The business owned by the corporation or LLC doesn't have to be located there, or even be doing business there.
To operate as a Foreign LLC, entrepreneurs have to register the business and appoint a Registered Agent in each state where they plan to work. This is usually done through an online filing system, and it may require fees depending on the state.
The California legislature initially waived these formation fees to help encourage business growth for domestic and foreign LLCs, corporations, and limited partnerships.
The answer is yes; you can legally live in a different state than where you formed your LLC. However, whether you want to is a different story. For some businesses, having an LLC outside their home state can be very beneficial, but for others, it could be the move that causes the business to close.
You can do the work yourself to form an LLC in California, but you will need to do your homework before filing with the state. We illustrate the 10 Steps to follow to create your new business entity.
The answer is yes; you can legally live in a different state than where you formed your LLC. However, whether you want to is a different story.
How to choose the best state for forming an LLC as a nonresident Wyoming, which has low fees, no state income tax, and strong privacy protections. Delaware, which has strong legal benefits and favorable corporate laws—a good choice for businesses that aim to attract investors.