We are planning on starting an online business and were wondering in state we should register our LLC in?

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We are planning on starting an online business and were wondering in state we should register our LLC in?

One member would be living in VA while the other member would be living in CA. The LLC would be an online business and plans to hire an independent contractor to do remote work from CA and NY. If we choose to register the LLC in either VA, CA or NY, do we need to register as foreign LLC’s in the other states?

Asked on March 5, 2019 under Business Law, Virginia

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

1) There is no difference for all practical purposes between establishing the LLC in CA, VA, lor NY: the law regarding LLCs is so similar in all states (no matter that some states try to convince you that they are better to register in) that you have the same rights and protections no matter which state you create the LLC in.
2) You need to register as a foreign LLC not where you have workers, but anyplace you engage in business: e.g. where you have a own property, where you sell goods or provide services, where you have an actual office (and not just a remote worker). There has to be some business connection beyond merely having an employer (or owner) who works out of that state.


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