Should I form my LLC in the state I live in?

The best state to form your LLC in is almost always your home state. Since your business is primarily operating there, whether it's a physical location or an online business, forming a Domestic LLC (an LLC registered in the state where you actually do business) is simpler and cheaper than forming a Foreign LLC (an LLC registered in one state but doing business in another). If you form your LLC outside your home state, you'll typically still need to register that LLC as a Foreign LLC in your home state before you can legally do business there. That means paying two sets of state filing fees, hiring a registered agent in the other state, and filing two annual reports instead of one, extra cost and complexity with little upside for most businesses. There are two common exceptions to the "form in your home state" rule: 1. Non-US residents: If you don't live in the US, you can choose any state to form in, since you don't have a "home state" for this purpose. Wyoming is a popular choice due to its strong privacy protections and low ongoing annual fees compared to states like Delaware. 2. Real estate LLCs: Real estate holding companies are often formed in the state where the property is located, regardless of where the owner lives, for liability and legal reasons specific to real estate. Outside of these exceptions, forming in your home state keeps your compliance simple and your costs lower over the long run.