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 There are some odd outdated laws that can be a real pain.

Charlene MPH CEO & Founder, ReciproCare, Halcyon Fellow

March 26th, 2014

Thanks to all of you for your helpful answers!! 

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

March 25th, 2014

Maryland is much friendlier to LLC and potential investors.

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

March 25th, 2014

In our experience Maryland, is by far.

Conway Anderson VP of Product at Academia.edu

March 25th, 2014

Why not Delaware or Wyoming? 

Cecili Reid

March 25th, 2014

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