Legal Question in Business Law in California

Why are you forming an LLC at all? Why add that additional level of paperwork and taxation? Unless you have substantial personal assets and you are afraid you may be sued and have to sell them to satisfy a personal judgment, or you want to bring in investors/partners, there is basically no reason to be anything other than a sole proprietor.

Mr. McCormick has a point. However, if you do decide to use an LLC or corporation, I would recommend that the business be set up in whichever state your hand moves the mouse. Having a storefront is not the sole determinant of where you need to be signed up ...... operating a business in the 21st Century often involves little more than a desk and computer. As a California-licensed attorney, I can't say whether Minnesota offers worthwhile advantages, so I'd tend to advise setting up in California; then, if and when you move back, see what Minnesota requires for you to register there as a so-called "foreign" (non-MN) LLC.