I live in PA. Should I consider forming aLLC else where? Is there any benefits?
Depends on the state. Some states are known to be more business friendly than others. Better protections, etc. You need to your research to see which states are better for the industry you're in.
There are tax benefits that vary across the states. I recommend working with a very good vetted CPA. Find the best one that you can afford because, in the end, the CPA can save you thousands in taxes by setting the foundation for the corporation correctly. I have had a few corporations choose Delaware for a verity of different reasons, not just tax reasons. https://www.legalzoom.com/articles/incorporating-in-delaware-advantages-and-disadvantages
Hello,
Some states have lower tax or no taxes. Nevada is a popular place for people to incorporate.
Keep in mind while I know a LOT about the law (having worked in journalism and as a coach/consultant for over 20 years) I am not a lawyer.
However, I can help walk you through some processes of forming your business — such as deciding your strategies in many areas (like marketing) and getting free publicity.
I would love to help you further, so I hope you'll book a short follow-up call soon.
Best wishes,
Stephanie
You can certainly form an LLC in a different state. The choice of jurisdiction will depend upon a few factors, such as the business laws within the state, privacy protections, tax implications and liability protections. It will also depend upon how many owners are in the LLC. If you are the sole owner of the LLC, the entity is classified as a single member LLC and is disregarded for federal income tax purposes. In some states, single member LLCs aren't afforded the same protections from creditors as multi member LLCs. Generally, creditors are limited to charging orders and are not permitted to take over an LLC interest or seize assets within the LLC. Some states, however, do not provide these protections for single member LLC's. Only certain states such as Delaware, Wyoming and a few others, have specifically adopted statutes that provide these protections. The other concern is privacy. Some states maintain a public database which lists the LLC name, address and the owners of the LLC. If you desire more anonymity, you should form an LLC in a jurisdiction that does not publish these details.
Taxes are certainly always another concern. Some states have mandatory tax filings for entities formed within the state, while other states do not require annual filings if you do not conduct a trade or business within state lines. If you form an LLC in a different state, but you live and operate your business within PA, you'll likely still be required to file a PA business tax return for the entity because you're headquarters are within PA.
