Q: I'm from NYC. I am starting an e-commerce business. Could I get an LLC in Wisconsin? What are the pros and cons?

A: There is a lot of misinformation online that is preying on the public. Generally, the best State to form an LLC is the State is where you planning to operate the business from. Here are some things that may go wrong if you open a Wisconsin LLC, while you are in NY: 1. You would have a very hard time opening a bank account in NY. 2. You would subject yourself to taxes in both Wisconscin and New York. 3. A Wisconsin LLC is subject to Wisconsin LLC Laws. An LLC that does not have a tailored made operating agreement to protect its owner it's almost useless. Here, your LLC documents would not be able to be molded to protect you. NY lawyers are not familiar with Wisconsin LLC Law. 4. If something goes down wrong in the business, it would likely take place in NY. A NY plaintiff with a NY lawyer, would easily parade the LLC in NY Courts, and say that this owner is a con man, he is not even properly registered in our State. 5. I have had 2 clients who formed Wisconscin LLCs, who came to trying to fix their mistake. In both cases, we dissolved the Wisconscin LLCs. In both cases, the owners did not do NY LLCs because of the newspaper requirements. The truth is that you can form a NY LLC for around $1,200(including publication and legal fees). NY LLCs are more expensive to set up, but they are cheaper to operate. For example, most states charge $50-$150 for an annual report. In NY, LLCs typically only pay $9 for every 2 year. In 2-3 years you have offset the publication expense, by just the report filing price differential. Hope this helps.