If you do that then you have two problems: the same amount in fees from CA for being a foreign entity operating in that state + the fees of whatever state you formed your LLC/C-Corp/S-Corp/whatever.

That's a good question... the last couple of LLCs that I've formed have been for businesses that are clearly operating in CA (one was for real estate here and the other for a local service company) and thus require the LLC there. Since I'm selling to the whole US here, maybe it is a better option... I will look into it.

Lawyer here. Not yours. But consider Delaware or really any state. You do not need to form it in CA just because that’s where you are. Just get a registered agent and pick a state that doesn’t have oppressive LLC fees...

We've gone over this with our lawyers many times, but if you do the majority of your business operations in CA and have an LLC in any state you'll be subject to $800/year minimum franchise tax in CA still.

https://www.lobbplewe.com/blog/2019/09/rules-for-out-of-stat...

CA levies a (not insignificant) fee even for Delaware LLCs that operate in California.

Yes, $800. Same cost as forming the LLC.

Damn, that's what I was hoping to avoid :/

Weather tax.

What should we check to see which state is the best to form an LLC in? I want to double-check whether it’s viable to form one in my state before considering Delaware.

Why an LLC instead of an S-corp?

Because then you end up paying there _and_ in CA. Any state you do business in demands a cut. Even so, if you ever intend to sell your company or do business outside your state, it makes sense to be a Delaware company - lots of lawyers know Delaware business law.