LLC

Georgia versus Maryland LLC?

Charlene MPH CEO & Founder, ReciproCare, Halcyon Fellow

March 25th, 2014

Does anyone have advice about forming a LLC in Georgia versus Maryland?  Pros and cons? I understand that some states have advantages over others.

Thanks!

Anonymous

March 25th, 2014

Couple of notes:
1. There are probably tax benefits for incorporating in Delaware over either of the other two, although you will need to pay a registered agent fee and a fee to qualify as a foreign corporation in other states, in that case (overall, depending on the expected size of your startup, the tax benefits should outweigh the fees).
2. If you want a VC to invest in your business, you almost certainly want to form a corporation, rather than a LLC. Although it is slightly more work (only slightly), an S-Corp has almost all of the benefits of a LLC. Although VCs will ultimately force you to switch to a C-Corp (because they will take preferred shares, which are not permitted by S-Corp rules), this is a simple and painless process. (VCs will probably also make you incorporate in Delaware if you do not originally do that).

Although I am a licensed attorney, please do not interpret any of the above as legal advice or assume a client-attorney relationship has been created. You should consult a local attorney and have a more detailed discussion, rather than relying on these notes.

Conway Anderson VP of Product at Academia.edu

March 25th, 2014

I can tell you this: definitely do not do your LLC in New York. There are some odd outdated laws that can be a real pain.

Conway Anderson VP of Product at Academia.edu

March 25th, 2014

Why not Delaware or Wyoming? 

Tony Leonard Founder @nurseVersity @ptVersity | #500Strong (b16)

March 25th, 2014

Maryland is much friendlier to LLC and potential investors.

Cecili Reid

March 25th, 2014

I am extremely interested in what states are better. More specifically new York, Washington, California, DC/Maryland, and Georgia.

Tony Leonard Founder @nurseVersity @ptVersity | #500Strong (b16)

March 25th, 2014

In our experience Maryland, is by far.

Charlene MPH CEO & Founder, ReciproCare, Halcyon Fellow

March 26th, 2014

Thanks to all of you for your helpful answers!!