There are a few considerations that come to mind for this question:
– Which state has the best laws related to cryptocurrency? Several states are currently considering blockchain legislation. There are a few states that already have laws on the books. As you consider this question when you’re ready to incorporate, think about things such as transparency, state operations, and consumer protection. Since blockchain laws are fairly new, it’s important to think about this when you’re actually ready to form the business.
– Which state has the best protections for your chosen entity? When choosing a state to file your incorporation, you need to consider how business friendly the laws (and courts) are. You’ll also want to consider taxes. For instance, California requires LLCs to pay an extra tax (around $800) even if the LLC doesn’t turn a profit.
– Consider the overall cost. Of course, you could complete the paperwork on your own for any state that you’d like. That tends to keep the cost down. Yet, if you’re thinking about incorporating in a state where you don’t live, you’re also going to need a registered agent in that state. Additionally, if you do business in other states aside from where the business is incorporated, you’ll have to register the business in those states as a foreign corporation.
You might consider talking with a cryptocurrency attorney who knows about blockchain laws to get some advice for your specific needs. At, we’ve collected some of the biggest cryptocurrency lawyers in the country. Our attorneys have helped clients with things like smart contracts, ICOs and regulatory support. Please visit us for a complimentary initial consult!