Where to file LLC
Thinking about filing your LLC in Delaware, Wyoming, or Nevada because a guru on TikTok told you it’s the secret to saving on taxes and protecting your privacy?
Stop. For most small businesses, this is the most expensive mistake you can make.
I’m Shameem, and with Emma from Micro Biz Legal and Growth, we see this every single week. A cleaner in Ohio, a barber in Texas, a baker in Florida — they paid $400 to form an LLC in Wyoming, and now they owe fees in TWO states.
Let’s break down the real truth about choosing the right state for your LLC — no boring lawyer talk.
Myth 1: Delaware Is For Everyone
Delaware is amazing — if you’re building the next big tech startup in Silicon Valley and you want venture capital money.
Delaware has a special court system for big corporations. Investors love it. That’s it.
If you run a dog grooming van in Michigan, a candle business from your kitchen in Arizona, or you’re freelancing in New York, Delaware does nothing for you. Your customers are in Michigan, you are in Michigan, but now your paperwork is in Delaware. Your bank and your home state are going to be confused, and it will cost you.
Myth 2: A Wyoming LLC Saves You On Taxes
This is the biggest lie on the internet.
The IRS and your home state don’t care where your LLC paperwork lives. They care where YOU do the work.
If you live and work in California with a Wyoming LLC, California still taxes you. You didn’t avoid California taxes, you just added Wyoming fees on top of them. There is no magic tax loophole by filing out of state.
If you live in California and make money in California, you pay California taxes. Period.
Myth 3: You Can Ignore The Registered Agent
Every state requires you to have a Registered Agent — a real physical address in that state where legal papers can be delivered.
If you form your LLC in your home state, you can be your own agent for free.
If you form out-of-state, you HAVE to pay a company $100-$300 every year to be your agent. And if that agent misses a lawsuit or a letter from the state? You could get sued or your LLC could be dissolved without you even knowing.
Myth 4 & 5: Privacy Is Total and Foreign LLCs Are Easy
Privacy: Even if Wyoming doesn’t list your name on the public website, your city business license knows you. Your bank knows you. The IRS knows you. Your county knows you. You’re not invisible.
The Foreign LLC Trap: This is where it gets really expensive.
If you live in Tennessee but you formed your LLC in Delaware, Tennessee says, “Hey, you’re doing business here. You need to register as a Foreign LLC.”
Now you have:
2 states, 2 filing fees, 2 annual reports, 2 Registered Agents.
You just doubled your cost and your paperwork to get zero extra benefit.
The Bottom Line for 99% of Micro Businesses
If you’re a solopreneur, freelancer, cleaner, barber, baker, trucker, coach, Etsy seller, or you own rentals in your own state — FORM IN YOUR HOME STATE.
It’s cheaper, it’s simpler, it keeps your bank happy, and it keeps you compliant. Your bank is much more likely to open your business account without hassle if your LLC state matches your driver’s license state.
Your LLC should live where YOU live.
When DOES It Make Sense to File Out-of-State?
Only 3 exceptions:
- You’re truly nomadic. You live in an RV full-time with no home base.
- You’re building a VC-funded tech startup. You are actively raising millions from investors.
- You own property or have a physical location in multiple states. Like rentals in Florida and Ohio.
If that’s not you, file at home.
The 3 Questions to Ask Before You File
Before you pay anyone, ask yourself:
- Where do I live most of the year?
- Where do I do most of my work?
- Where do my customers pay me?
If the answer is the same state for all three, that’s your LLC state. Keep it simple.
We want to hear from you — did someone tell you to file in Delaware or Wyoming? Did you already do it and have to fix it? Drop your story in the comments.
Next up: How to form your LLC correctly in minutes — step by step without overpaying a formation service.
DISCLAIMER: This content is for education and entertainment purposes only in the United States of America and is not legal advice, tax advice, or financial advice. The information provided is general information only. Every business situation is different and state laws change frequently. You should not act or refrain from acting based on this content without seeking advice from a licensed attorney in your state and a qualified CPA or tax professional for your specific situation. Watching or reading this content does not create an attorney-client relationship.