can you form an llc in a state you dont live in [Glossary]



Last updated : Aug 27, 2022
Written by : Zetta Cartagena
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can you form an llc in a state you dont live in

Can I live in California and have an LLC in another state?

As a California resident, you are free to register the LLC for your online business in any state.

Can I open an LLC in Wyoming if I live in another state?

Wyoming Sales Tax License: If you live in another state, you can form a Wyoming LLC even if you don't live in Wyoming.

Do you have to live in the state of your business?

The process of setting up a business varies from state to state, however there is no rule that you must form a business in the state you live in. In fact, no state requires that a business owner live in the state where the business is incorporated.

What is the best state to set up an LLC?

  • Delaware is the most popular state to file an LLC in because it has a strong reputation for being business-friendly and offers a fast filing process with increased protection for owners.
  • Wyoming offers low fees and great tax benefits for people looking to start an LLC.

Can you form an LLC in any state?

When you decide to start a limited liability company (LLC), you can choose to form your company in any state, regardless of where you are based. But in most circumstances, your home state is going to be your most-effective option.

Can I do business in California with a Delaware LLC?

A Delaware corporation doing business in California is both legal and commonplace. Founders may decide to do this for many reasons, even if their principal place of business will be California.

Can I form an LLC in Wyoming if I don't live there?

You can form a Wyoming LLC even if you don't live in Wyoming. Residency in the state, or the USA, is not required to form a company. A majority of LLCs are formed by non-residents. Forming an LLC in Wyoming as a non-resident is the same process as for a resident.

Can a Florida LLC do business in other states?

Yes, you are allowed to operate a Florida LLC for any legal business in every state in the USA. Under the US Constitution, your Florida LLC is viewed as a legal “person” and other states cannot discriminate against this “person” based on where he/she/it was born or incorporated.

Can a Texas LLC do business in another state?

A corporation, LLC, LP or LLP cannot just transact business in states other than its home state. A corporation doing business in another state needs the other state's permission to transact business there.

Is an LLC good for multiple states?

Updated November 4, 2020: Can you incorporate in multiple states? No; although your corporation or limited liability company can register and do business in multiple states, you are only allowed to incorporate in one state.

Can I open a business bank account in another state?

The short answer to the question is no. The bank account used for the business will need to be opened in the state where the business is operating and where at least one of the members of the LLC resides.

Why do businesses incorporate in Delaware?

The advantages of incorporating here include: The state offers some tax benefits. Delaware doesn't impose income tax on corporations registered in the state which don't do business in the state. Also, shareholders who don't reside in Delaware need not pay tax on shares in the state.

Which state has the lowest taxes for business?

Nevada, South Dakota, and Wyoming have no corporate or individual income tax (though Nevada imposes gross receipts taxes); Alaska has no individual income or state-level sales tax; Florida has no individual income tax; and New Hampshire and Montana have no sales tax.

Why is Wyoming an LLC?

Wyoming has many advantages over other states for building an LLC. It has no state income tax, filing and reporting costs are low, members' privacy is assured, and it has charging order protection laws.

Do I have to live in Nevada to form an LLC there?

Member/Manager Information of LLCs Unlike some states, Nevada does not require members or managers to live in the state itself. In order to successfully form an LLC, you must be 18+ years old and file your articles of organization.

Why is it better to form an LLC in Delaware?

Delaware is often considered one of the best states to form an LLC because it has limited fees and tax obligations. In fact, many businesses choose to form an LLC in Delaware even if they don't intend on doing business in Delaware.

Do you have to live in Delaware to form an LLC there?

As long as you retain the services of a Delaware Registered Agent, you can form a Delaware corporation, LLC, LP, benefit company or non-profit corporation without being a resident of Delaware or the United States.

Is Forming an LLC Difficult?

In most states, LLCs are relatively easy to set up and maintain. However, it's important to fill out the paperwork properly and have an operating agreement that defines the members' rights and responsibilities.

Can I file an LLC in Delaware if I live in California?

If you choose to incorporate and only do business in Delaware, but are a resident in California, you still need to pay franchise taxes in both states. California may consider you to still be "doing business" in the state if you are simply directing or managing your Delaware LLC from the state of California.

Do you have to pay the $800 California LLC fee the first year?

Every LLC that is doing business or organized in California must pay an annual tax of $800. This yearly tax will be due, even if you are not conducting business, until you cancel your LLC. You have until the 15th day of the 4th month from the date you file with the SOS to pay your first-year annual tax.


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can you form an llc in a state you dont live in


Comment by Enrique Baatz

Yes he won the Champion of


Thanks for your comment Enrique Baatz, have a nice day.
- Zetta Cartagena, Staff Member


Comment by singletjeQ

are you currently searching the real estate market to invest in real estate property to expand on your investment portfolio or are you just watching this video to learn more about llc's and real estate and business in today's video i am going to talk to you about whether or not you need to live in the state where your real estate llc is formed what i mean by this is if you live if your primary residence is in california but you purchase real estate property in florida and you form a florida llc are you required to live in florida today's a day you find out so you're probably watching this video because you want to learn a little bit more about whether or not you need to live in the state where your real estate is located and where your llc is formed as i mentioned in the beginning of this video if you live in california but you purchase real estate located in florida and you form a florida llc do you need to live in florida let's go ahead and clarify this question but before i do that please make sure you hit the like subscribe and bell notification so you don't miss out on any future videos taking those actions truly helps our channel grow so thanks in advance so the question is do you need to live in the state where your real estate is located and where your llc is formed say for example you live in california but you purchased real estate in florida and you formed a florida llc the answer to this question is no but make sure you keep on watching to understand why the answer to that question is no when you purchase real estate property in a state where you do not live i keep going back to the same example but it's a great example you live in california but you purchase property in florida and you form a florida llc in this scenario the answer is no you do not need to live in florida in fact it's important to note that you are allowed and you are able to form a real estate llc in any state if you live in california but you purchase real estate in new york you're able to form a new york llc and you do not have to live in new york if you live in california and you purchase real estate in hawaii and you form a hawaii llc you do not need to live in hawaii you have the ability to form an llc in any of the states without actually living there but there may be drawbacks that you're going to want to be mindful of if you live in california but you purchase real estate in washington and you form a washington llc you will be responsible for washington fees and you will also be responsible for california fees when you purchase real estate in washington and you form a washington llc for that real estate the next step would be to notify the secretary of state of california to do what's called a foreign qualification in order to notify them that you have a company that is out of state this step is very important because this creates the foundation for a successful business the last thing you want is to structure your business in a manner and to form your business entity in a way that will lead to hiccups and issues down the road what i mean by this is if you fail to notify california that you have a company out of state you may be liable for additional expenses or you may be liable for certain penalties that's why it is very important to notify the correct authorities and to let them know exactly what you're doing so that all the notices regarding taxes expenses business actions activities are all documented this will ensure that you have no hiccups in the future and that you're able to continuously expand and grow your real estate business without having to backtrack some situations that i've seen in the past is an individual lives in california but they'll purchase real estate property in another state such as florida and they'll form the llc in a different state such as wyoming in this case there are three states that will be involved one will be california where you live the second will be florida where the real estate property is located and the third state will be wyoming where the llc is formed in this case it does get complicated you will be responsible for fees associated with all three states what i mean by this is you will be responsible for the california fees the florida fees as well as the wyoming phase a lot of these fees really have to do with taxation and so what most people do in order to keep things and to keep taxes as simple as possible is they will form an llc in the state that they live in after forming the llc in the state that they live in they'll then purchase real estate property in a different state such as florida and they will provide florida with a foreign qualification in other words they will notify florida that they have real estate property located in the state and that will ensure that any sort of profits that the real estate gains any sort of expenses are all track in order to keep taxes as simple as possible if you decide to purchase real estate property in a state that you do not live in then the two options that you may want to consider doing is one forming the llc in the state that you live in and then doing a foreign qualification in the state where the real estate property is located or your second option would be to form the llc where the real estate is located and providing a foreign qualification to the secretary of state where you live if you happen to have any questions about anything that i talked about in today's video please make sure you click in the link in the description box below to book your free call with a professional who can help you better understand how to form an llc which state to form an llc for your real estate business if you're planning to purchase real estate outside of the state that you live in if you happen to enjoy this video please make sure you hit the like subscribe and bell notification so you don't miss out on any future videos it's time to invest in yourself it's time to rise if you would like to learn more about llc's corporations vbas business startups sole proprietorships make sure you go ahead and watch one of these videos here you


Thanks singletjeQ your participation is very much appreciated
- Zetta Cartagena


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