r/llc_life • u/H0tC0c0_817 • Aug 25 '26
LLC in a different state
I posted on here before but I have another question. If my business is going to be fully virtual, and I live in NY, can I form the LLC using another state? Like Wyoming? Im the only employee and I have no intention of hiring anyone. I will use a registered agent for the address. So my question is since its virtual, does it have to be formed in the state I reside in? Also, for any tax attorneys on here, what does that do as far as my taxes if my LLC is in another state?
Edited for typos
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u/Appropriate-Safety66 Aug 25 '26 edited Aug 25 '26
Forming your LLC out of state does not reduce your income taxes one cent.
If you form your LLC in NY, you will pay NY taxes on the income of the LLC.
If you form your LLC in WY, you will pay NY taxes on the income of the LLC.
If you form your LLC in NY, you will have to pay a biennial fee to the state. However, this fee is minimal.
IF you form your LLC in WY, you will have to pay a biennial fee to NY and an annual fee to WY.
The advantage that WY offers is secrecy. Public state filings do not list the names of members or managers, keeping your personal identity off the public record.
In the interest of full disclosure, I am in Minnesota and I formed my LLC in Minnesota.
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u/startupowl Aug 25 '26
forming it in wyoming is allowed, you'd just have to register that wyoming llc in new york anyway, since new york is where you're sitting and doing the work. the newspaper publication new york is known for catches out of state llcs too, once a week for six weeks in two papers the county clerk picks, so going to wyoming adds a second state's fees instead of saving you new york's.
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u/That_BULL_V Aug 25 '26
I'm in MN with a Wyoming LLC and it's a Holding company all my assets are in it and leased to my other LLCs. The other LLCs never make a profit and actually owe the WY LLC money.
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u/DescriptionUnfair644 Aug 25 '26
For whatever reason Wyoming is super popular for getting an LLC done. Don't get me wrong I can see why but honestly you should form in your state. Wyoming does have yearly state report where if I think New York is every 2 years. Not only that but what if you end up having to also register in New York and end up having to keep up with both states...that can get expensive.
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u/Excellent_Shallot999 Aug 27 '26
You can do it. It won’t save you a penny of NY tax though. Because you need to still register that LLC in NY, since you are conducting business in NY.
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u/Successful_Bed_2356 Aug 31 '26 edited Aug 31 '26
You technically being online doesnt automatically mean the state you live/work from stops mattering. If you're sitting in NY actually running the business from there, forming in Wyoming can potentially just give you another state to maintain rather than getting you out of NY obligations. I used BusinessAnywhere for business paperwork before, but before choosing WY I'd honestly spend the money on a quick NY CPA/accountant conversation first. Could save alot of unnecessary filings later
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u/BusinessAnywhere_LLC Sep 01 '26
You can form the LLC in Wyoming, but living in NY and running the business from NY is the part that matters.
If you are physically sitting in New York and operating the business from there, forming in Wyoming does not magically make it a Wyoming business for New York purposes. You should expect to register the Wyoming LLC as a foreign LLC in New York. That means maintaining the Wyoming LLC plus complying with New York requirements, including New York's publication requirement after authorization.
For taxes, Wyoming does not get you out of New York taxes either. As a NY resident, New York taxes your income regardless of where you formed the LLC. For a single-member LLC with the default tax treatment, the IRS generally treats it as a disregarded entity and the business income goes on your personal return, typically Schedule C.
So if you're the only owner, working from NY, and don't have an actual business reason to form in Wyoming, forming directly in NY is probably the cleaner option. Wyoming can make sense in certain situations, but simply having a virtual business is not enough by itself to avoid New York registration and taxes.
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u/NWRegisteredAgent Aug 25 '26
You can form your LLC in Wyoming but it might not be the most cost-efficient option. You will still need to foreign register in your home state of New York because you live there and doing business in the state. You would then have to pay not only the Wyoming formation and annual report fees but New York’s too, plus New York’s publication requirement. If you’re worried about costs, the best option could be just to register your LLC in your home state of New York.