In what state should I incorporate or form an LLC?

We’re not allowed to advise in which state you should form your company. You can ask an attorney or accountant if you need help making that decision. Most of our clients form companies in their home state for a few reasons.

1. Formation and maintenance fees are usually lower when you operate in your home state. Starting a company in another state means you’ll have to “foreign qualify“, which means you’ll have to pay taxes and fees in two (or more) states instead of just one.
2. Incorporating or forming an LLC in your home state keeps banking, laws, etc. simple to keep your business in compliance.
3. If you plan to continue living in your home state, you’ll save on travel and other remote-work related costs, insurances, etc.

There are a couple of “business-friendly states” like Delaware, Nevada, and Wyoming. Many of our clients choose to form companies in those states, even though there are additional requirements. Review our guide: Which State to Choose? for a comparison and more information.