Whittier, CA asked in Business Formation, Business Law and Internet Law for California

Q: What constitutes as the state in "doing business" for online business filing for a LLC? Owners in separate states too

I've read in some articles that the place to file an LLC is in the state you reside, even for online businesses. As you would need a foreign LLC to do business in the home state anyways if you filed out of state.

But what is the definition of "doing business"? Is it the location of the bank that profits are deposited into that qualify as doing business in that state? Or is it truly where the founders/owners live?

If it's where the owner(s) live, then why specifically? What if 2 owners live in separate states?

1 Lawyer Answer
Louis George Fazzi
Louis George Fazzi
  • Jess Ranch, CA
  • Licensed in California

A: Lawyers practice law so they can provide advice on questions just like this. Are you asking this question because you are only interested in LLCs, or do you need advice on how to set up an LLC and begin operating a business under one? This forum isn't here just to satisfy someone's curiosity. It is intended to be a way for people to get legal advice on simple legal issues. It is not law school, and we are real, practicing lawyers who volunteer our time to try to help people resolve actual problems.

Doing business means exactly what it states. Engaging in business. You are engaged in business where you are physically located. You do business where you are, and that means just what it states. If two people in different locations go together and form a business, the business location is the physical location where the business conducts its business. Manufacturing could be in one state, sales in another, and a warehouse somewhere else. But you have to identify the business's location by selecting one place. For that, you will want to get the advice of a good lawyer.

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