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Comment on Ask HN: Any way of avoiding the $800/yr FTB tax on CA LLC's?

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You can register an LLC in almost any state; you don't have to live or work there. You just need a registered agent -- some address with a person available to take official mail for your business -- in the state. And there are companies that sell registered agent services for much less than the $800/year tax you would avoid.

I've heard you are supposed to pay the $800 a year CA tax even if you are incorporated out of state, as long as your operations are really in California.

I don't live in CA, so I don't know whether the state taxes foreign entities that do business in their state, you may very well be right.

It doesn't prevent you from organizing an LLC elsewhere if you had reason to, though.

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