Q: I started a software company in Michigan and I am getting clients from other states, do I need to file LLC there?
I started an LLC for software-as-a-service in Michigan and I am getting clients from Ohio and Illinois, I wanted to know that do I need to file an LLC in all states from where I get clients or I can do business from my Michigan LLC only, and where do I pay income tax?
A:
The filing of Articles of Organization in the other states in which you are doing business is not appropriate. Doing so would create separate entities that would have to be treated accordingly.
The registration of your company in those states in which you are doing business is, however, another matter.
If your business does not have sufficient contacts with the other states, you may not have to register as a foreign entity doing business in the "remote" states. But, if you do have sufficient contacts, for instance an office located within the state or employees who reside in that state and work from home, etc. registration is recommended.
Each state has different, albeit similar, rules as to whether you will be required to register. Check out those rules, statutes, etc.
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