Best state to file an LLC for a new shopify owner

Hello there,

I am a brand new Shopify small business owner based in SF California. I would like to register an LLC for my business and EIN. With my research there are a couple of states like Delaware, Wyoming, Nevada. Does anyone know where is the best state to file an LLC for a small business owner with just starting? Your help would be greatly appreciated. Thanks

Hi @starrytink

First of all, best of luck with your new business venture :blush:

It’s important to consider factors such as taxes, fees, and legal protections when choosing a state for your LLC. Since you are based in California, forming your LLC in your home state might be the most convenient option. This would allow you to avoid the complexities of dealing with multiple states’ regulations and taxes. However, California has higher annual fees and taxes compared to some other states.

Delaware, Wyoming, and Nevada can offer some tax benefits and legal protections, it’s essential to weigh those advantages against the potential complexities and costs of registering as a foreign LLC in California. As a small business owner just starting, it might be more straightforward and cost-effective to form your LLC in your home state of California. However, I would recommend consulting with a legal or tax professional to discuss your specific situation and determine the best course of action for your business.

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Hi there, @starrytink !

That’s a great question!

While we can’t make this decision for you, we do have a number of blog articles you can check out to inform yourself of the specifics of setting up an LLC in each of these jurisdictions.

Check out our articles on Delaware here, on Wyoming here, and as pertains to Nevada here.

Have a read of each of these and take this info into account along with your own research so you can make the best-informed decision.

Could you tell me a bit more about what sort of business you’re in, where you’re looking to sell, and who you want to sell to?

You mentioned you’re just starting out, would this be your first time selling online?

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