Chapter 5
Choosing the Best State for Your LLC
IN THIS CHAPTER
Deciding between your home state and another state
Looking at states with the best tax and privacy laws
Understanding what a registered agent can do for you
Say you’ve lived in California your entire life, and now you want to create an LLC all the way across the country in Miami. That’s where you believe your retirement community real estate project will have its greatest chance to flourish, but you worry that because you don’t live in Florida, you’ll have trouble establishing your LLC. Not to fret: Many LLCs have different home states than their owners.
It’s a common myth that you need to form your LLC in the state in which you live. LLCs are considered incorporated entities, which means that if you maintain them properly, a layer of separation exists between the business and the owners. Think of an LLC as an individual over which you have full control. Like an individual, your LLC can live in whichever state benefits it the most. Sandy beaches and nice weather may be the appealing qualities of the state you choose to call home, but your LLC will benefit from other qualities, such as low taxes, privacy, and favorable ...
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