Is it Possible to form an LLC out of state?

[Kumar Gaurav]

Hello,

I would like to know if it's possible to form an LLC out of state. For example for someone living in NJ is it possible to form an LLC in Texas? Please note my goals are not just real estate as I am also considering tech consulting for self employment or even tech startup. I also have a 401k from my previous employer so want to get started with a solo 401k. Appreciate your inputs.

Thanks

[Kevin Manafi]

Hi @Kumar Gaurav, 

Yes--it is possible to form an LLC out-of-state, and in fact, it is quite common. However, it's important to keep in mind that whatever state you choose to incorporate your LLC in, you will then be subject to that state's laws. If you ever had some sort of legal issue with the LLC, you could be required to have to appear in that state's court.

In the end--unless there is a specific reason you are choosing to incorporate in a different state (more favorable LLC/business laws and treatment), most people would be fine to just stick with the state they are based in for simplicity's sake.