This can be an awkward subject to broach, even if you and your business partner have known each other for years. After all, suggesting that you “deserve” more than your partner is bound to cause hurt feelings
Assuming that the business should be split 50-50 because you’re “in this together” is one of the most common – and most serious – mistakes that new business owners make.
Each state has a system by which foreign entities (those formed in another state or another country) can register to do business in that state.
Forming out of state often makes a lot less sense for an LLC than it does for a corporation. That’s because the LLC is a pass-through entity, meaning that the entity itself doesn’t pay taxes on its income.
The LLC tax structure is often beneficial for early-stage companies, since it’s less complicated than taxation on a corporation.
The PBC is a very new structure, and many states have yet to recognize it as a legal entity. Maryland passed the first law recognizing PBCs in 2010, and other states have since followed.
There are lots of good online directories for accountants and lawyers, as well as platforms that will match you with a professional in your state and who practices in your chosen area.
Many entrepreneurs assume that Delaware or Nevada is the best home for their LLC, due to the outsize buzz that these states get.