• October 2018
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I am creating a clothing startup in Illinois, but I am incorporating as an LLC in Delaware. How would a virtual address work for me?

I’m a little confused by how the question is phrased but I’ll try my best to help! I notice a big red flag – Why are you forming as an limited liability company (LLC) in Delaware if you’re setting up shop in Illinois?

Unfortunately, a lot of companies blindly decide to form an LLC in Delaware because of things they’ve heard. “All companies form in Delaware” and “Delaware is the best, always” are typical phrases. But they’re not always true! If you’re a small to mid-sized company without an intention to go public or seek funding from venture capitalists (VC) then there aren’t many reasons to form your company in Delaware. Setting up your LLC in Delaware while doing your business in Illinois will cause you to pay more taxes and deal with more formalities than you need to.

If you still want to proceed as a Delaware LLC then I think you’re looking for a registered agent. A registered agent in Delaware will essentially provide you with a “virtual address” so that your LLC itself doesn’t have to have a physical location in Delaware, but you’ll have to pay for the registered agent every year.

If you need help finding a registered agent in Delaware, or interested in consulting with a skilled startup attorney on your decision to form an LLC in Delaware then stop by LawTrades. We are a legal startup for startups, and our services and pricing reflect that.

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