I’ve seen a post from previously (on LeaseHackr) regarding Montana LLCs.
Weird question from my side: Which is the best state to form an LLC?
I’m thinking about forming a technology startup (that will probably fail like other startups ) and was trying to decide between Delaware, Montana, New Mexico, Nevada & Wyoming to form an LLC.
Now I would probably want to use the same LLC to register/lease cars also in the future because if things go belly up, then at least the LLC would have served me in some way
Could you please let me know which state would be better for this? Any particular reason why you picked this specific state etc.?
I always thought it was Delaware. They have 1 or 2 addresses in downtown that have 100’s of thousand of business that use that address for their HQ registration.
But if doing it more for owning property (e.g. car / boat etc) Delaware may not be the best.
People use Montana LLCs for autos because they don’t charge sales tax or require inspections. On something like a $100K car with no cats that is a huge benefit. I don’t think you will find that in any other state.
Unless you are talking to the (1?) attorney on here and they are your attorney, this isn’t the place.
And as someone who used to have a foreign LLC when I moved into California, I would never have an LLC from another state again living in California. But that’s me. I dissolved and reformed here after several years.
There are a lot of questions you have to answer before anybody who knows what they’re talking about could actually give you proper guidance. How many members? What taxation are you going to elect? What’s the purpose of the LLC? Are you shielding liability? Is the LLC going to contain intellectual property?
One of my things is advising entrepreneurs and startups and mid-stage companies, and most ask the wrong question and hang the wrong paper. Very often it’s as easy to paper it correctly along the way that try and undo the wrong thing later.
Plenty do it everyday. Right now I wouldn’t live anywhere else, so I pay to play. This is year 7 in CA and so far the honeymoon hasn’t worn off.
Taxes are only one aspect.
I had a client in CA create a Delaware LLC thinking they were doing the right thing to avoid taxes. They were a tech startup building IP (and now have defended patents). They paid a top Sandhill Rd legal company a fortune to repaper everything in CA as a C Corp for IP and Labor reasons.
If you are going into business for yourself and by yourself, your CPA can absolutely talk you through it. If there will be other equity owners and products, you might also need a lawyer.
Laws can be tricky. Need to get professional advice for “one’s” specific situation, business & operations, short term & long term goals and many other factors…
I grew up in NY, and spent the last 2 years at a client there. So absolutely not NY/NE no. Honestly I’m completely over the east coast.
And I’ve shipped leases across the country before so nbd.
I have a couple “next phase” plans cooking but I’m waiting for this housing downturn to buy in SoCal first. I’ve been sitting in a stack of chips for years.
It is NOT malpractice/illegal if the laws were written to allow it… I’m sure they’ll change laws, as all good things will come to an end.
Anyway, I just wanted to ask other people who formed LLCs for their opinion. Because I’m definitely looking at car leases only for my future auto needs & wanted to see if I can make an informed decision regarding forming an LLC.
) and was trying to decide between Delaware, Montana, New Mexico, Nevada & Wyoming to form an LLC.
