Is it worth forming an LLC and in which state?
July 18, 2011 8:01 PM Subscribe
I'd been wanting to form a corporaton for a long time. So many benefits it seems:
track business expenses for income-tax deductions
protect assets against law-suits
gain credibility for certain transactions
But all the gory details are getting me down...
posted by markhu to Law & Government (20 answers total) 5 users marked this as a favorite
I pulled the trigger last month and used LegalZoom.com to form a Nevada LLC, even though I live in California. Main reason was that California registration fees are $800 per year, and Nevada is a fraction of that.
But then I read this article (after the fact) about picking a state at http://sustainableonlinesolutions.com/llc-in-california which has me worried.
Then, it is starting to come true. I went to a [national bank] branch here in Los Angeles and they refused to open a business checking account for my Nevada LLC corp... said I needed to be registered with California. I asked but did not get a clear answer on if that was just a bank policy, or a state/county/local regulation... Also unclear if "registered with California" means throw away the Nevada one and form a California-based LLC, or if there is some sort of cross-border registration.
Did I just waste my time & money forming an out-of-state corporation?
Presumably it wasn't always like this... when did it change?
Oh, and the other annoyance. Using LegalZoom puts you on lots of referral lists and there are now all sorts of "service" companies soliciting me. I feel like a miner being sold picks and shovels and pans.... and maybe thats really where the money is in servicing the dreamers rather than trying to execute a new dream.