Do I have to register as an LLC in two states if my business partner and I live across the country from one another?

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Do I have to register as an LLC in two states if my business partner and I live across the country from one another?

I am attempting to start an online publishing company with an associate who lives
in California. I personally live in Pennsylvania. We want to know whether we need
to file in both states and if not, then which state is the correct one to
establish ourselves in.

Asked on October 15, 2016 under Business Law, Pennsylvania

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

No, the state in which an LLC is registered has nothing to do with where the owners ("members") live. Form the LLC in any state you wish to--for small business, generally, that's the state where most of the actual "operations" take place (where most work is done) or, if there is no one state where that happens, for convenience's sake, where the member who's most in charge of legal, regulatory, etc. matters resides. Then after forming your LLC, you need to register it to do business in any other state in which you have significant operations (e.g. a sales office), again, regardless of where the owners live.


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