startup-costs, llcI’ve asked this on money.stackexchange.com, but this site might be better suited.
I’m looking to form a web based company with a friend of mine. I’m living in Colorado and he’s living in Oklahoma. We want to start up a website that offers a digital service and we want it formed under an LLC. For both of us, this is our first time doing anything more than our taxes.
I found one question about forming an LLC out of state and I’ve read several pages online that describe the general process. But how do I make a decision about some of the specifics? How do I pick a state and if I don’t know anybody in that state how do I find an “agent” in that state?
I’ve found several sites that are willing to do most of the work for me if I pay, but I know that they want me to pay for stuff I don’t want or don’t have to pay for like $80 to get an Employer ID from the IRS.
Once I pick a state, I think we’ll be able to collect our thoughts and begin down that road. But what factors do I need to look for when picking a state?
Generally, you pick the State which you're located at, because you'll have to register your LLC there in any case. In your case that would be either Colorado or Oklahoma - register as domestic in one, as foreign in the other.
If your concern is anything other than mere convenience/costs - then you need to talk to a lawyer, however most State LLC laws are fairly alike (and modeled after the "Uniform Limited Liability Company Act".
Keep in mind that most of the sites talking about "forming LLC out of state" are either sales sites or targeted to foreigners attempting to form a US company. All the cr@p you hear about forming in Delaware/Nevada/Wyoming - is useless and worthless for someone who's a resident of any of the US States. If you're a US resident - you will always have to register in the State you're located at and do the work at, so if you register elsewhere - you just need to register again in your home State. In your case you already span across States, so you'll have to register in two States as it is - why add the costs of registering in a third one?
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