Co-founder and I live in different states. Where should we LLC?

Question

This has been a difficult answer to find. Local accountants in my area are a bit baffled.

My co-founder and I live in Florida and Ohio, and we're not sure where to LLC our business. We have paying customers, and are about to grow quickly, so we want to get our ducks in a row.

How should a startup company register their business when nearly all employees will be remote?

Matthew Johnson · Accepted Answer

Why an LLC rather than C-Corp? Are you not planning to fundraise?

Adrian Cole 🎲 · Answer

I don't think it matters as much. LLCs are simpler than say C-Corps.

What you can do is register in the state with more favorable tax/business laws/costs.

The important thing is that you can accept payments from customers legally.

Ignacio Carmona · Answer

less taxes in Florida

Eugene Hauptmann · Answer

@adriancole 💯

Greg Barbosa · Answer

@igncarmona Yup, but from what I can tell, I'd have to register as a foreign LLC in Ohio too. Either way, I'd end up paying fees in one state or the other.

Eugene Hauptmann · Answer

Thanks for the reference @adityavsc 
So many different thins might come into play, I'd recommend to start with the nexus of what and where you want to sell.

But I'd defer to our legal guru @legalhacks and @llctoolkit

Greg Barbosa · Answer

@adityavsc Selling online memberships, no physical locations or goods.

Eugene Hauptmann · Answer

@mattcrail Yeah, C-corp is better to do the fundraising. But it has a higher overhead cost. LLC is simpler and easier to get started with, especially if you setting up a small business.

Greg Barbosa · Answer

@mattcrail No plans on fundraising.

Co-founder and I live in different states. Where should we LLC?

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