Should we form our LLC in Delaware or Georgia?

[LeoRoosevelt48]

Hello all,

My brother and I are starting our own recruitment/training company in the near future. We have been discussing filing in Delaware or Georgia (where we currently live). Here are a couple bullet points of consideration:

-We are wanting to form our recruitment/training company to get the ball rolling on trademarks, bank account set-up, team building (finding an accountant, legal, etc), logo design, and website development.
- I am leaning towards Georgia because 1. it is where we live, 2. We can do it ourselves and 3. It'll be roughly $100 to do so.

However, my brother is leaning towards Delaware because our overall mission is to find investors or potentially sell once we hit a certain growth point.

After reading a considerable amount of articles and watching videos on the subject, I think the LLC in our home state would be much easier.

Any thoughts?

 

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[LuckyPup]

Hello all,

My brother and I are starting our own recruitment/training company in the near future. We have been discussing filing in Delaware or Georgia (where we currently live). Here are a couple bullet points of consideration:

-We are wanting to form our recruitment/training company to get the ball rolling on trademarks, bank account set-up, team building (finding an accountant, legal, etc), logo design, and website development.
- I am leaning towards Georgia because 1. it is where we live, 2. We can do it ourselves and 3. It'll be roughly $100 to do so.

However, my brother is leaning towards Delaware because our overall mission is to find investors or potentially sell once we hit a certain growth point.

After reading a considerable amount of articles and watching videos on the subject, I think the LLC in our home state would be much easier.

Any thoughts?

I've heard Wyoming and Nevada are also good from a privacy and tax standpoint.

 

[Effort#ohsomany]

Hello all,

My brother and I are starting our own recruitment/training company in the near future. We have been discussing filing in Delaware or Georgia (where we currently live). Here are a couple bullet points of consideration:

-We are wanting to form our recruitment/training company to get the ball rolling on trademarks, bank account set-up, team building (finding an accountant, legal, etc), logo design, and website development.
- I am leaning towards Georgia because 1. it is where we live, 2. We can do it ourselves and 3. It'll be roughly $100 to do so.

However, my brother is leaning towards Delaware because our overall mission is to find investors or potentially sell once we hit a certain growth point.

After reading a considerable amount of articles and watching videos on the subject, I think the LLC in our home state would be much easier.

Any thoughts?

You can incorporate your business in your home state and avoid paying additional State fees for operating in other states for now. When you're seeking investors, and I assume your meaning outside investors that you'd have to source, you can go ahead and do a full incorporation in Delaware, the preferred state for incorporating foremost investors.

If you're intending on going through seed funding, series a, etc you're going to need more than an LLC anyway. in order to authorize preferred shares, which is typically what outside investors are going to want, you need to be incorporated as a corporation, and if you intend on having foreign investors or shareholders, a c Corp is the only way to go.

That said, for the time being, it sounds like you are essentially a two-man operation working from home (where do you have an office or not is really irrelevant). Avoid the state franchise taxes and file in your home state. You can always branch out later when you bring new people into the organization

 

[Tourmaline]

Starting off, you probably want to do it in your own state. You'd probably need to file in both states anyways if you want to be in Delaware as you'll be operating out of Georgia presumably.

 

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