Should I register an online business in Nevada?

If I want to form an LLC to sell music digitally online, would it benefit me to form an LLC in Nevada (my home state is North Carolina), since I won't have a physical product? If I were to add merchandise being sold online and stored in my personal residence, would Nevada be beneficial, or would NC be better? NC may not be my permanent home, as I am a transplant of 3 years, willing to relocate.

Why would you register in Nevada, if you live in NC? Keep in mind most states require you to have a registered agent (someone to receive legal papers) in the state where you register and each state where you do business. For a simple LLC, why complicate it?

There are a little benefits of forming LLC in NV comparing to CA, one of these is business license fee payed annually, it's 200$ in NV and like 800$ in CA. It also has no corporate income tax or personal income state tax. Also NV is more friendly for privacy. Anyway it's better to consult with an accountant.

To determine if it's better to form a company in Nevada vs your home state you should compare the annual fees for both states plus estimated income tax for your home state. If you have other concerns such as privacy or other reporting requirements then Nevada is probably better. The state fees to start a company in Nevada are $400 total (plus registered agent fees and any setup fees if you use a Nevada incorporator). The annual fees for renewal in Nevada are $325 (plus registered agent fees). No state income tax in Nevada. Compare that to the fees and income tax in your home state to decide if it's worth your while to form a company in Nevada vs your home state.

Wyoming has the least expensive organization fees and annual reporting fees. There is no income tax. The registered agent can be anyone with a Wyoming physical address where as NV has stricter requirements. Should there be a legal action in Wyoming the regulatory environment is very business friendly.

Here is a fee schedule, forms, and other info (73 page list of registered agents for hire) you need http://soswy.state.wy.us/Business/Business.aspx Yes Im from Wyoming :D and am the owner of a Corp and two LLCs - I checked out NV and it didnt stack up.