In what state do I register my LLC in if my business is location independent/online.

I’m an Amazon seller and I need to register my business with the state in order to file for tax exempt. Also, I’ve heard that some states have very low income tax rates and I can register my business in any state and it doesn’t have to be in CA. I want to know the state I should register in and I want to know how to apply online for an LLC for that state.

Asked on March 6, 2019 under Business Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 1 year ago | Contributor

You pay income tax where your operations are--which for a "location independent/online" business, would be where you do the work/provide the services, which is most likely where you are located. It does not matter where you establish or register the company: company taxes are based on where the work is done (like your personal taxes are based on where you personally live and work). Therefore, unless you are moving to a low-tax state, the tax laws and rates do not matter in terms of where to register.
In whatever state you decide to register in--which may as well be the state you are located in--you go the state's secretary of state or department of state website: from there, you will be able to register the LLC.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.