SimplifyLLC › LLC Formation

LLC Formation Guides

A limited liability company (LLC) is a popular business structure for small business owners as it’s cost-effective, tax-friendly, and scalable alongside your business operations.

You’ll need to file the required paperwork with your local secretary of state (SOS) to form an LLC.

The exact requirements vary from state to state, but overall establishing an LLC is a straightforward process.

Here are the step-by-step instructions explaining how to form an LLC in each state.

Do It Yourself Guides:

You can register your LLC in any of these locations, but starting your LLC where you live and do business is usually the best option for most new business owners.

If you plan to have operations (e.g., warehouse, storefront, employees, etc.) in other states, you’ll need to register your business as a foreign LLC in those states.

In-state vs. out-of-state registration comparison

Out-of-state registrations mean you’ll need to comply with laws and regulations in both your home state and your registration state.

On the more positive side, you may be able to reduce your tax bill if you incorporate an LLC in a different state.

Delaware, Nevada, and Wyoming are some of the best states to form an LLC for companies that want to limit their tax exposure legally.

In-state vs. out-of-state registration comparison
In-state	Out-of-state
Only one set of state laws to comply with	Two or more sets of laws to comply with
Registration fees may be more expensive	Registration may be cheaper
Pay taxes in only one state	The tax bill can be cheaper or more expensive, depending on the state

Article by:

Nikki Winston

CPA

Nikki Winston is a CPA who enjoys writing about accounting, tax, personal finance, and career advice. Catch Nikki on Twitter @NikkWinstonCPA.

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