Legal Question in Business Law in Massachusetts

Re: Should I create a LLC in New York or massachusetts?

The answer is it depends. Without knowing what kind of web business it is it is difficult to say where you should form the LLC.

If you are going to move back to NY and as a practical matter going to operate from New York with an office etc, NY is probably the best place to form the LLC absent knowing anything else.

However, there could be reasons to want an LLC in another state such as DE depending on certain issues. Without more information as to the type of web business and where you currently treat yourself as a resident it is difficult to properly advise you.

Please feel free to call me if you want a more informed suggestion.

Re: Should I create a LLC in New York or massachusetts?

In general, a person or entity pays income tax in the jurisdiction where the business takes place. In the case of a web company, it may be subject to taxation both in the location where it's employees or owners work, as well as in other jurisdictions where it seeks to do business. In any event, a Massachusetts corporation doing business in NY will have to register as a foreign corporation, and pay fees to both NY and MA corporate registrars (e.g. Corps Div of the Secretary of State), and vice versa if the corporation is first formed in NY.

In some respects, your question is better addressed to an accountant.

(... and of course, you could also form a corporation in a third state, e.g. DE, but the same issues would apply- where are you actually doing business & performing the work?)