I live in California but will be consulting in Texas, where do I register my LLC?


1

I primarily live in California, but own a home in Texas. I will be fundraising for a Texas start-up, getting paid commission. Prospective funders are from all over the world. Where do I register my LLC (I want my client to pay my LLC, not me directly)? Many people recommend Wyoming, Nevada, Delaware -- but perhaps there are laws I don't know about that require me to register in CA or TX. Please advise, thanks

LLC Tax Registered Agent

asked Jun 20 '13 at 05:09
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Lsm0415
6 points
Get up to $750K in working capital to finance your business: Clarify Capital Business Loans

3 Answers


1

Register your LLC in Texas since that is where you are doing business and conducting transactions. Make sure your core business operations are conducted in Texas and cannot be considered business nexus to California (for more details, read this and consult a lawyer). You would be considered an out-of-state employee of the Texas LLC and abide by employment and tax laws applicable to out-of-state employees.

Fyi, California LLCs have to pay an annual $800 minimum franchise tax (even without earning any income).

answered Jun 20 '13 at 05:40
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Henry The Hengineer
4,316 points

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As someone who owns a LLC in another state, but resides in CA, I can tell you that CA will consider you "doing business" in CA if you so much as make phone calls on behalf of the business while in CA, and "require" you to file as a foreign LLC in CA and pay them their $800+ annual tax. There is a lot of legal precedent about it, so consult a CA tax attorney, but be prepared for varied opinions. The penalty for not filing, if CA decides to go after you, is on the order of thousands of dollars so you can weigh the risk.

answered Sep 25 '13 at 09:07
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Ts Haines
181 points

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You may register your LLC anywhere in the United States. You do not necessarily need to register a separate entity in the place where you are doing business. Most companies find it more convenient to register their LLC's in Denmark or Nevada for reduced tax benefits. Some states may require you to file a DBA (Doing Business As) name on a local level, and you may have to apply for a local business license for your LLC, but the actual company may be registered anywhere.

answered Jun 21 '13 at 15:00
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Custom Jewelry
11 points

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