Forming your Limited Liability Company (LLC) in your home state is typically the most advantageous choice. This is primarily because your company's primary business operations occur within that state, whether it's a brick-and-mortar establishment or an online enterprise. Typically, if you form your entity out of your home state you will need to "foreign qualify" your entity in your home state.
However, there are two notable exceptions to this general rule:
1. If you are a non-U.S. resident, you have the freedom to select any state for your LLC's formation. Our recommendations, in this case, lean towards Wyoming or Delaware.
2. If you have an LLC focused on real estate, you can proceed to the next section, as the standard "home state rule" does not apply in this specific context.