In the beginning stages of starting a business, it can be easy to forget a few things (especially having so much to do). Though following these 8 steps to form an LLC can ensure you’re on the right track.
First, figure out which state to form the LLC in. There’s a lot of discussion about Delaware, Wyoming, and Nevada being the optimal states to form an LLC. Though for most people, you’re better off forming the business in the state that you’re in. This brings about the obvious question here:
But why do you people want to form in those specific states?
Delaware, Wyoming, Nevada, and some other states have certain laws that can be very beneficial for businesses. For instance, Nevada has no state income tax. People may want to form there because they believe they won’t have to pay income tax. That’s when you hit a snag. With an LLC, that only works if YOU live in Nevada. You still have to pay state income tax in the state where you live. Also, each state has laws requiring foreign entities to register their business within the state. So if you register the business in one state but operate in another, you’ll most likely have to register the business as a foreign LLC in that second state anyway.
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Tune in to the new episode of All Up In Yo’ Business to find out the seven other steps to form an LLC. And be sure to subscribe to our YouTube channel for more All Up In Yo’ Business! Contact us today if you’re in Colorado and need help with your LLC.
Want more information for your business? Check out: Attorney-Client Privilege and Confidentiality Explained