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?

A few folks are answering just the location question, but there's another issue here: Why do you want to form an LLC? Do you want to take on outside investors? Or do you just want to grow this for yourself? If you think there's any chance you may want outside capital at some point, an LLC is likely not the right choice; you're probably better off with a C Corp in Delaware.

If you want to keep this smaller: As to the California minimum $800 tax for LLCs, that is definitely a consideration. As long as your actual business is headquartered in California, it'll be tough for you to avoid that tax by trying to form an LLC elsewhere -- but perhaps a California-admitted attorney could give a more detailed answer.

(All usual disclaimers: this is not meant to be used as legal advice, and no attorney-client relationship has been created, etc.)

Answered 6 years ago

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