Questions about forming an LLC?

Discussion in 'General Business' started by boxer126, Dec 29, 2007.

  1. #1
    Hey everybody,

    I've been doing some research about forming an LLC. I'd like to register one soon, but I have a couple questions I was hoping someone could help me out with.

    1. I live in MA. I run multiple websites and sell advertising. My servers reside in TX and AZ, in what state does my business reside?

    2. Can I register an LLC in New Hampshire instead of the three previously mentioned states and not worry about "qualifying" to do business in other states since my business does not reside in New Hampshire?

    Any help would be greatly appreciated.

    Thanks,
    boxer126
     
    boxer126, Dec 29, 2007 IP
  2. snowbird

    snowbird Notable Member

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    #2
    1. I live in MA. I run multiple websites and sell advertising. My servers reside in TX and AZ, in what state does my business reside?

    I assume any employees, including yourself, do the server maintenance and web design/marketing work from MA. Therefore, your business is entirely in MA.

    2. Can I register an LLC in New Hampshire instead of the three previously mentioned states and not worry about "qualifying" to do business in other states since my business does not reside in New Hampshire?

    When I decided to become a corporation, one of the factors I considered was filing for a corp in a "business friendly" state. My attorney advised me that doing so would subject me to taxes from another state. While having a corp or llc in a different state may offer better protection from creditors and personal liability, the cost of doing so needs to be weighed out by an attorney and accountant.

    I would recommend speaking to an attorney about filing for a llc and pay them to do it. This is their expertise, and it's worth the $300-$500. Get their input on which state, if outside of your own, you should file in. And by all means, run this by an accountant to get their take on any tax implications if your llc resides outside MA.
     
    snowbird, Dec 29, 2007 IP
    boxer126 likes this.
  3. boxer126

    boxer126 Well-Known Member

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    #3
    Thanks snowbird, I'll do that.

    -boxer126
     
    boxer126, Dec 30, 2007 IP