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Forming an LLC in state other than my home state

Asked by: Oscar - 15 July, 2011
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/default.png-f1597c1da25f30f8c1a941405e8391c8 What are the advantages of forming an Film Company LLC in Nevada or Delaware as opposed to my residing state New York?
Answered by: Lloyd Johnson - 16 July, 2011
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/36.jpg-879792e1197755ef7c796380de659758 Oscar,

From purely organizational point of view it actually might be more advantageous to stick with New York state as the state of organization, assuming your actual base of operations will be in New York.

Technically, Delaware, Nevada and Wyoming are famous for being incorporation heavens for a variety of reasons, however it is important to understand that in order to operate in a state other than the state of organization a company would need to do Foreign Qualification, in other words register a Foreign Entity in the state of operation.

If you don't have any specific state where your business would operate (e.g. have an office, employees, physical assets like real estate etc) then it could be a good idea to form your LLC in one of those three states other than in New York. Also keep in mind that New York requires LLCs to do newspaper publication, which in Lower state could bring the total cost of forming your LLC to over $2000 (there are some exceptions like certain LLCs dealing with theatrical productions, as far as i know).

Another option is to form your LLC in one of the three states I mentioned and then later on when your company grows into having physical operations in New York you could then form a Foreign Entity for that LLC.

As far as advantages of DE, NV and WY I invite you to read some of our articles about those states here:

- Incorporating in Delaware
- Incorporating in Nevada
- Incorporating in Wyoming

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