
Ask HN: Delaware LLC, Residing in New York? - _august
I have a solo web project which has started generating some income. I&#x27;d like to form an LLC at this point, as I plan on continuing to bootstrap and grow it. I&#x27;m in the process of relocating to NYC, so I&#x27;m not fully aware of the tax implications. Will I have to register the business as a foreign &#x2F; out of state business in NY as well?<p>I&#x27;m usually working from cafe&#x27;s&#x2F;home&#x2F;co-working spaces on this, and sell no physical products.<p>Any guidance &#x2F; insight is appreciated!
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davismwfl
IANAL. But I have done this a number of times, though not specifically in NYC.

Yes, you will need to register as a foreign LLC in your home state if you
transact business from that state. Each state has specific rules on what
"transacting business" means, but generally if you work from that state or
have a bank account that you routinely access or have mail delivered there you
will be required to register there. My state has some ways around it but
almost every CPA/Tax person I have talked to always suggests the foreign
registration even when it may not be 100% required just because of the
potential for liabilities adding up. So you will owe NYC LLC taxes in addition
to normal Federal taxes and Delaware annual LLC fees.

My 2 cents, there is no reason to register in Delaware as an LLC and then
register in your home state. Just register in your home state and save
yourself some money and headaches. While there are some advantages of a
Delaware LLC, there is also a number of extra fees, steps and caveats. So
unless you have a reason to need those specific benefits and are willing to
pay advisors to make sure you don't have (or accidentally create) issues it is
easier and less complicated to just start with your home state.

One advantage of a Delaware LLC people often cite is the personal liability
protection which is better than many other states, however, since your primary
business is in NYC and operating under the laws of NYC it becomes a little
more complex than that simple statement.

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_august
Thanks, that makes sense. You're right, it will be simpler to just register in
NYC.

