Forming a LLC out of state

6 replies
Hello, Im starting a variety of online marketing activities and setting up some websites, as well as creating some original information products ( the basic online business model).

I would like legal protection as well as the tax advantages of starting an llc and being taxed as a s corporation.

I currently live in Arkansas but wish to incorporate in Wyoming. I have no physical presence for my business. I will only operate online. I do not live in or own any property in Wyoming.

I understand that all of the income will pass through my llc and I will only be taxed on my personal income.

Will i need to pay personal income tax in Arkansas of Wyoming if i live in Arkansas but have my registered business in Wyoming?

Will I have to register as a foreign corporation in Arkansas if I incorporate in Wyoming but only operate online?

Will I be able to open a bank account for my llc in Arkansas without registering in Arkansas. Would I need to use national banks that also have a presence in Wyoming or can I use local banks?

Im willing to accept the experiences of other business owners in similar situations, as well as any official legal advice anyone wants to share.

Thank you for all of your help.
#forming #llc #state
  • Profile picture of the author Jeff Burritt
    I incorporated out of state. Went with these guys.

    DE LLC protection is great. Rates are competitive.

    And incnow handles registered agent requirement. You pay a few hundred per year. Some states are less and some states are more, but DE is easy. You just pay the state fee online, and done. I like easy.


    P.S. If you plan on setting up mulitple LLCs, then inquire about the 'series' llc option.
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    • Profile picture of the author alfrednox
      Thank you for your help.
      Will I need to register in my home state as a foreign corporation, or can i skip that step?
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      • Profile picture of the author Jeff Burritt
        Sorry, I don't know anything about Arkansas. Except maybe a joke or two which you've probably already heard So, I would call the secretary of state and just ask them. They probably get those questions all the time. Arkansas Secretary of State Mark Martin

        Originally Posted by alfrednox View Post

        Thank you for your help.
        Will I need to register in my home state as a foreign corporation, or can i skip that step?
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  • Profile picture of the author Vilcoms
    Hi, If you want to form a LLC out of state, it seems that almost everyone recommends Delaware. Why would you choose Wyoming?

    We have clients that recently formed a Delaware LLC and they went with Delaware INC (Harvard Business Services). Also maybe you should check Stripe Atlas program, they help entrepreneurs to easily form a company, open a bank account (and Stripe account) and get guidance about law and taxes. You also get $15,000 in Amazon Web Services credits.

    Stripe is a reputable company and they work with some of the best startup accelerators like Y Combinator and 500 Startups so probably it is a reliable option.
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  • Profile picture of the author alfrednox
    Wyoming is sort of like a cheaper Nevada. No out of state tax, private listings and owner protection laws make Wyoming a solid choice.
    Delaware sounds like a good option as well though.

    Thank you, I will look into these resources.
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  • Profile picture of the author naveenkumarkk
    Many LLC owners opt to file in their home state as a domestic LLC if they are physically located and transact most of their business within that state.
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