Call Us Now: +1 (877) 330-2677 Live Chat: ONLINE NOW            
https://d25eic0jctudgb.cloudfront.net/images/site/general/answers-to-answers-8743d0241f5d8c2c996225efe2063f89
https://d25eic0jctudgb.cloudfront.net/images/site/headlines/articles.jpg-5fa541d76bf4be9016b1176147b3bc96

Business located in San Diego - Incorporate in Delaware or California?

Asked by: Bob - 21 November, 2011
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/default.png-f1597c1da25f30f8c1a941405e8391c8 What are the pros and cons to register a LLC in Delaware and operate the business in California? Or is it better to incorporate in California if the business is located there? Many thanks, Bob
Answered by: Ray Albert - 24 November, 2011
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/194.jpg-630c771619e92bede7e6f696b56767b9 Bob,

The pros of forming an LLC in Delaware would heavily favor that of forming an LLC in California in terms of privacy as well as maintenance costs. California businesses are hit with an annual $800 franchise tax fee (minimum), while in Delaware you would only have to manage the annual registered agent fee, along with the $250 franchise tax associated with filing the entity's Annual Report.

Typically speaking, if your business is physically located in California, then forming an LLC in California would stand as a more viable option. Of course you can always have your business registered in Delaware, and then file for a Foreign Qualification in California. That however will still subject you to all the above mentioned fees in California.

 If you have an internet business without a true physical location then you could look to incorporate in a more business-friendly state such as Delaware or Wyoming, where the tax and maintenance benefits would be much more in your favor as a business owner.

I hope you were able to find this answer to be helpful.

Comments:

We Want To Connect With You!

Social Media is increasingly the preferred method for businesses to connect with their clients, peers and customers. We are dedicated to share information and useful tools to help you grow your business.

Like us on Facebook, follow us on Twitter, and let's begin the exchange to Help Grow America One Business at a Time - starting with yours!

https://d25eic0jctudgb.cloudfront.net/images/site/general/payment-methods-footer-052a63251a379d6e5ece1801f07470fc Official PayPal Seal SecurityMetrics for PCI Compliance, QSA, IDS, Penetration Testing, Forensics, and Vulnerability Assessment