Legal Question in Business Law in Delaware

Re: forming llc in delaware

One comparative set back is that if you are doing business in California you would still need to register in California foreign company. It's a minor issue but just one addtitional thing you have to do, and an additional expense.

Another minor issue is with Delaware you may need to recalculate taxes owed to avoid a high franchise tax--I can explain this further in person.

Re: forming llc in delaware

Go ask your tax consultant, not attorneys. Tax concerns are the issue you raised.

Re: forming llc in delaware

Have you also considered other options beyond an LLC, or is this a knee-jerk LLC? As for your specific question, if the LLC does business here, you will need to register with the CA Sec. of State, and will be subject to the same regulation and taxes as a domestic CA LLC, plus the DE regulations/costs. Consult your business attorney and CPA before forming any entity.

Re: forming llc in delaware

Delaware gives great flexibility in operating a business and has low business taxes, which is why many national companies favor it. In addition, litigation could be done in the Delaware courts, which are well-known for their business litigation experience. You still would need to register in Cal. or other states if doing business there. I practice in both Del. and Pa.