LLC State of Incorporation

LLC State of Incorporation

Member since 2020 · 8 posts · 3 votes

Hello. I need to open an LLC (Corp2Corp contact is coming), but I'm not sure in what state to do it. Currently I am located in TX but in 6 months I will relocate to WA.

What option is better:

1) Open LLC in WA ($200 fee) and register a foreign LLC in TX ($750 fee). Also there will be annual fees in WA

2) Open LLC in TX ($300 fee) and register a foreign LLC in WA ($200 fee) when I move there

3) Open LLC in TX ($300 fee) and domesticate it in WA ($200 fee) when I move there. I'm not sure how much I need to spend on it. Probably, at least, I will need to pay for a new registered agent ($150)

I'm not sure how difficult it is to do domestication in comparison with the registration of a foreign LLC

WA has $60 annual fees, and TX has $0 annual fees (for LLCs with less than $1.23 million in revenue, I would probably never reach this number anyway)

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Accountant · McKinney, TX · Member since 2023 · 393 posts · 580 votes
3y

I agree with @Steve Vaughan as you probably want a domestic entity with respect to where the property or business is located.  There are foreign filing fees and other considerations when you are out of state. In Texas for example you have the Texas Franchise Tax report to file whether you have gross receipts or not.  

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  • Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    3y

    @Alex Yakubovich if this  to hold real estate, I'd have in the state the property is in.   

    If this is to operate your own job, I'd have it in the state the majority of my revenue is coming from. 

    You mention the (small) set-up and annual fees, but not the state dept of revenue filings and taxes.   

    WA has no state income tax, but they do have quarterly B&O sales tax if you are in retail at all, anything other than owning RE. 

    How will TX be relative to your business purpose? What is the purpose of this LLC?

  • Accountant · McKinney, TX · Member since 2023 · 393 posts · 580 votes
    3y

    I agree with @Steve Vaughan as you probably want a domestic entity with respect to where the property or business is located.  There are foreign filing fees and other considerations when you are out of state. In Texas for example you have the Texas Franchise Tax report to file whether you have gross receipts or not.  

  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    3y

    If you are a small investor / business, you likely want to create the LLC in the state where the property is in.

    If business case law, charging order protection and anonymity are important to you, you may want to create one LLC in a state such as Wyoming, Delaware, Nevada. 

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