Forming an LLC in another state you don't do business in

Worth it or not?

[sadelb]

Hello everyone,

I'm getting ready to start up an ecommerce personal care business in New Jersey. I have an LLC I haven't really used that was set up in Nevada with legal zoom being the registered agent. Could I technically use this LLC in Nevada as my business and do everything else in NJ? (Manufacture, ship, run the website / amazon store) Or should I just start up a new LLC with my NJ address? Searching the internet I seem to get a lot of different answers on this subject. Thanks. - Ben

[LifeinAsia]

start up an ecommerce personal care business in New Jersey. I have an LLC I haven't really used

If the name of the e-commerce business is the same as the LLC, it might work. If the type of business of the LLC is related to personal care e-commerce, it might work. Otherwise, I'd say you're asking for trouble.

The other issue (of which I have no experience) is any NJ's law about needing to have a local LLC if you are doing business in NJ. I can give you my experience being in California (but again, I don't know NJ's regulations- you'll need to check with the NJ Secretary of State to see how they do things). I have a corp that I originally registered in Delaware (was overseas at the time). When I moved to California and started doing business in California, I had to register the company in California- keeping the DE entity, I registered the company in California as a foreign corporation. (Note- I have a C-corp, not an LLC, but I think it's pretty much the same requirements regardless of the entity type.)

A few years ago, finally decided to terminate (I forget the exact term for it- dissolve, maybe?) the company registration in Delaware- their annual taxes for non-resident corps just became way too expensive to justify keeping the company registered there. And since the company was no longer registered in Delaware, I had to change the California registration to a domestic corp.

[tangor]

First, we can't give legal advice at WW, even though some of us are actually lawyers!

Second, keep in mind that State Attorneys are looking for things like this (under mandate of local governments to go after ANYTHING that looks hinky and interferes with collection of tax dollars).

Even Amazon is playing by the rules these days.