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Comment on Ask HN: Cost of 1 Person LLC

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I don't know that it's necessarily easier to form an LLC in Delaware than anywhere else. Companies usually prefer to incorporate in Delaware because it has the longest history of corporate law, so that more precedents have been set than in other states. By forming an LLC, it kind of removes the benefit of having that long history of precedence since LLCs are relatively new.

As always, this is where getting a professional involved is worthwhile. A lawyer or accountant who specializes in this sort of work can tell you what the various legal liabilities you'll have to deal with in each state are, as well as how your choices impact your tax liabilities.

[Edit: This previously had a sentence about code formatting in the submission; the formatting has since been fixed.]

Delaware is not a prime choice for corporate filings due to its history in corporate law, it is the prime choice because it has low costs, few requirements on businesses incorporated in the state, and its existing corporate regulations are very management-friendly.

One thing that the original poster should note is that even if he incorporates in Delaware if he does most of his developement and operation in California then he will still be required to register as a foreign entity in California and pay CA franchise fees (and maintain a registered agent in CA.)

I short, go ahead and register in CA if you are not going to be seeking outside investment and will be operating in CA. Take a look at the various steps and advice at the following: http://live.prokhorenko.us/2009/04/how-to-incorporate-startu...

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