What state should I form my company in?
There are many reasons why people would want to form a company in a tax friendly state. Or maybe you want a more anonymous state. New Mexico and Wyoming LLCs are great for holding companies and asset protection.
But as a general rule, you will need to register your company in the state where you will do business. So forming a Wyoming LLC that is going to do business in California is probably not going to help you too much. If you are considering a complicated tax scheme, or you want to set up multiple companies to protect your anonymity/assets, we suggest talking to an attorney or a CPA. There are usually too many factors for us to tell you what state you should file in. It may be worth it to fork over some attorney’s fees if you are really interested in saving money long term.
If you are looking for more information about setting up an company with more privacy, read our page on setting up a private LLC.
We also have state tax information that might be helpful: state corporate income tax guide.