California Corporate entity formation

[beach guy]

I'm in the process of setting up a California LLC. Wondering if there is anyone out there who has done it and would be willing to describe their experience and offer any advice on ensuring the process moves along smoothly. I've already consulted an attorney but wanted to hear about the experiences of fellow 4HWWers. Cheers

[networkmemetics]

Unless most of your business is in California you shouldn't set one up there.

Nevada is good for privacy. No State Corporate sales tax either.
Delaware is good if you ever get sued. There is a huge amount of case law and the courts lean in favor of corporations.

California is pretty expensive, I would drop it unless you must use it.

NM

[dcjoey]

Agree with what some of networkmemetics said, if you are doing most of your business in CA you should probably set up your LLC there.

Although Nevada and Delaware are constantly praised for their privacy veil and tax breaks those apply mostly to those corporations who actually operate there.

If you setup an LLC in Nevada you will probably have to file as a Foreign Corporation in California to "allow" you to operate your Nevada LLC there. And then your supposed privacy veil is lifted because the state will make you disclose your LLC's information.

Not only that but then you'd essentially be paying double corporate fees (for both states). The pro to that is that you would be covered under Nevada statutes if in fact you were sued.

Hope this helps.