Basically I want to start a LLC in Delaware or Iowa since there cost for forming an LLC is so cheap. Do I have to live there? Does anyone have first hand experience in forming an LLC out of state? Thanks
Update:
So, then I must have a mailing address from that state in order to set up there? Also, when you say a representative, that also means I must have a person who lives there to take care of things. What if I have neither?
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I have formed LLC, C, and S companies in Nevada, Delaware, and the countries of Panama and Dominica and I live in Phoenix. I have no corporations in Arizona. The simple answer to your question is, no you don’t have to live where you incorporate. However, I would suggest that you not choose where based on cost, but instead base it on why are you incorporating? What state provides the greatest protection to your business model? Where do you pay fewer taxes for your type of revenue? Who will be your resident representative and what are the fees involved not just the state’s price of incorporation.
The short answer is yes, you can form an LLC in a state where you do not reside. However, in most instances you will need to have a company act as you ‘agent’ in that state. This usually means signing up with a company listed in the Secretary of State’s office in that state and paying a nominal annual fee. They will provide you a local address and will accept service for documents etc for you.
In Delaware you can do this all you need is a proxy so to speak to use as a physical address and receive mail. There are places that do it for a nominal fee. I did that 8 years ago, when I lived in Pennsylvania, I have since moved to Delaware. Note Delaware is a very business oriented state.
Source(s): Personal Experience
Have the LLC managed by potential of an accountant in yet another state and set up residency there. A lawyer can inform you approaches to do each and each and every of the place of work artwork and what the info are for the state you identify the LLC in.