I started a website that is software as a service. Currently I am a solo founder, and have not incorporated the company yet. The website is now bringing in some revenue (about $360 in recurring subscription fees), and is growing slowly but surely. Each client pays $40 a month, and the goal is to increase the business to a $1,000/month, with the goal of $4,000/month in 6 months. I live in California and now I want to incorporate this business as an LLC. Any advice as to where?
You might want to incorporate soon for liability purposes.
You might consider "foreign qualifying" an LLC in california, as this can provide additional asset protection and privacy.
-i.e. your name won't be shown on the state register.
Popular states for this type of procedure include Wyoming, Delaware and Nevada.
Essentially you would register an LLC in Wyoming and then foreign qualify that LLC to do business in California and this could provide greater protection for very little extra cost.
This is not tax or legal advice.