Pine Mountain Club, CA asked in Business Formation, Business Law and Gov & Administrative Law for California

Q: LLC in MT. Social Media Platform. Paid Membership from all states. Do I need to Register the LLC in all States? Thanks!

This is an internet-based social media platform with a paid membership model. I want to form an LLC for the business in Montana. Members may reside in any number of States. Lets say a person resides in Texas or California decides to become a member and pays for membership, is the Montana based LLC required to register as a Out-of-State LLC in Texas and California or for that matter any other State that a Member resides?

1 Lawyer Answer
James L. Arrasmith
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  • Sacramento, CA
  • Licensed in California

A: If your LLC is based in Montana but has members in other states who pay for membership, you may need to register your LLC as a foreign LLC in those other states, depending on their specific laws and regulations.

Many states require foreign LLCs to register with the state in order to conduct business or engage in certain activities within the state. The definition of "doing business" can vary by state, but it generally includes activities such as having a physical presence, soliciting business, or having customers in the state.

In order to determine whether you need to register your Montana-based LLC in other states, you should consult with a licensed attorney who is familiar with the laws and regulations in each state where you have members. The attorney can help you understand your legal obligations and provide guidance on how to comply with state laws.

It is important to note that failure to register your LLC in a state where it is required can result in penalties and other legal consequences. It is advisable to take proactive steps to ensure compliance with all relevant state laws and regulations.

In summary, if your LLC has members in other states who pay for membership, you may need to register your LLC as a foreign LLC in those states, depending on their specific laws and regulations. Consult with a licensed attorney to understand your legal obligations and ensure compliance with state laws.

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