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Legal Steps Every Business Owner Should Take

Lesson 4 of 13

What State Should I Form My LLC

Christina Scalera

Legal Steps Every Business Owner Should Take

Christina Scalera

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Lesson Info

4. What State Should I Form My LLC

Lesson Info

What State Should I Form My LLC

This is a big question, where should you form your LLC? This is something I get a lot, and the reason is because we're busy (laughs). This is the modern era, we're moving around, there's lots of people that are in the military, and they're always asking, where should this thing even be formed? I don't even know where I'm gonna live next year, so let's talk about that if that's you. Typically LLCs are formed in the home state of the person who is running the business. So where the majority of business activities are taking place, if it is a case where you're straddling states, I know there's some people that live on state lines, we'll move into the second point right here. So, if it is a case where you're straddling different states, then forming in your home state where you live is always a safe bet, and then registering your LLC as a foreign entity in the state that you're straddling and maybe commuting back and forth to, or have a lot of clients in, that's also a possibility. The sec...

ond option is a great possibility as well for anybody who moves around a lot, especially military spouses, or anybody that they've formed an LLC in a different state and now they find themselves somewhere else. So, when you form an LLC, you're going to be forming it where the majority of your business activities are taking place and then if you're moving, or if you're serving more than one state, you are registering as what's called a foreign entity in that other state. The other option, if you have moved permanently and you think you're gonna be there for at least a little while, the other option would be to dissolve your old LLC and reform a new one, so you would start a new LLC in the new state, and you would have a new entity that's formed that still has the benefits of what you used to have in your old state, you're just not paying for two LLCs in each state. Alright, and finally the last question that I get lots of questions about are business licenses, and unfortunately, I cannot give you a guide, we're actually gonna give you a free resource that gives you step by step instructions on how to form your LLC in any of the 50 states in America which is really cool, that should help you out a lot, but unfortunately (laughs) if I tried to do the same thing for business licenses I would never get anything else in my entire life done because this is going to vary by your county, by your city, everybody's gonna wanna take some kind of coin from you, and you are just going to have to check locally to see who (laughs) you need to pay in order to have a business license to operate in their area, that county, that city.

Class Description

The content and opinions expressed in this course are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem

Brought to you in partnership with

Navigating the legal waters when it comes to your business can feel overwhelming. Attorney Christina Scalera breaks down all the information that you need to know, empowering you to run your business with confidence. This class will teach you:

  • The differences between an LLC, a sole proprietorship and an S corp -- and which one is right for you

  • How to protect your business with legally sound contracts and where to find them

  • What to do when faced with a dispute

By the end of this class, you’ll be able to start the process of setting up your business structure, follow legal best practices and understand the resources available to you.

Ready to protect your business with top-notch legal contracts? Click here to start your free 7-day HoneyBook trial.

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Every minute of this is filled with such valuable info! She covers every legal topic you could possibly need to know about as a creative small business owner and clarifies lots of confusing topics. I feel super confident about my small business ownership after watching this. Thank you Christina!

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I loved this course! Covered so many topics I've been wondering about in an easy and understandable way!! Brilliant! Thank you!


Amazing! This stuff can be so hard to try and wrap your brain around but this is simple, easy to follow advice.