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

Answers:

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.


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