
Ask HN: What is the best state to form a single member LLC - nodesocket
I currently have a single member California LLC (disregarded entity). I am sick and tired of paying the flat $800 a year fee and $20 every other year statement of information fee. Not to mention their processes are still mostly all mail in, with very limited online capabilities.<p>What state is most friendly for single member LLC&#x27;s? Also, do you have to live in that state?
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kjksf
Since the cost is your main issue: you don't need LLC. You can register a name
as DBA, no hassle, no fees.

The most common reason people give for LLC is that it shields you from
personal liability so that if you get sued, it's your company that goes
bankrupt, not you. Personally I consider that a scare tactic as in: I've yet
have to read a single story of a small software business where that actually
happened.

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siegel
Small software businesses get sued all the time. Those types of lawsuits don't
usually get big headlines. So, that's why you don't typically read stories
about it.

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siegel
Are you doing business in California? If so, you're going to pay the
California franchise tax anyway. So, might as well stay as a California LLC.

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nodesocket
If all the business is web based (customers all over the world), what is
considering doing business in California? Is it based off residence? I don't
have an office.

I'm currently in San Francisco, but looking to move out of state to somewhere
that is not the People's Republic of California.

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siegel
Until you move, you're doing business in California. Once you move, that'll be
a different story.

My guess is you're not going to move to a state based on the minimum corporate
tax rate :) So, once you move, it'll be easier to make recommendations as to
which state is best for your LLC.

Until then, I'm sorry to say you're stuck with the California franchise tax...

