If I’m planning on starting and personally financing an online business, do I need to register my LLC in the state I am employed in?

In other words, would my contributions count as revenue coming from my state? The business will not be an online retail store. For the first several months, I will likely not generate any revenue from ads or the sale of services and I will personally cover all of the expenses of hiring a freelance web developer.

Asked on March 6, 2019 under Business Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 1 year ago | Contributor

You can form an LLC in any state you want: it does not matter where you are employed. Once the LLC is formed, you must register it as a "foreign" business in any state where you do busness--where you have a sales or production office or some other business presence. Your contributions to the business--e.g. the expenses you cover--are not revenue and are not taxable.

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