Does what state you form a LLC matter?

[Kelly Melrose]

Hi all,

I'm just starting out and am about to form a LLC. My home state doesn't seem to have the most favorable LLC laws. I'm thinking about forming a LLC in another state but have a couple questions concerning the matter?
Do the state laws where you do business take precedence over the state laws where you formed your LLC? Are there any tax implications for forming a LLC in another state? If it can be more favorable to form an LLC in another state, does anyone suggest a good state that has excellent LLC protection?

Thanks in advance for the thoughts.

[Ned Carey]

By and large where you form your LLC does not matter because most states will expect you to register as a "Foreign Entity" if you operate there. This blows holes in things like Nevada LLCs which are supposed to provide privacy.

Depending on your state there may be advantages to forming elsewhere, but don't count on it.

Since you are in Maryland don't waist your time. YOu must register as a foreign entity and file the personal property return every year = $300+. As far as I can tell there is no advantage to creating elsewhere. It will only increase your cost.

For others, Delaware, Nevada and I think Wyoming are states to consider.