I live in FL and am starting an LLC with a MN resident and we will both be operating in the state of MN only. Do we start a domestic LLC in MN?

Well, since you stated that you’d be operating only within the state of Minnesota, then creating a domestic LLC in Minnesota will probably be your best choice. Just remember that if you change your mind and decide to conduct business in Florida (and you’ve registered the business as a domestic LLC in Minnesota) that you will then have to register the LLC in Florida as a foreign corporation.

Some other things to keep in mind is to make sure that no matter where you are registering the LLC or conducting business, you may need to also check with other government agencies to ensure that your LLC doesn’t need a permit or license of some kind and find out whether you should collect sales tax. Doing those things before you register the LLC is just one more way to make sure that you’re staying within the confines of the law.

Since your LLC has two members, make sure that you have a well-defined operating agreement that discusses the responsibilities that both of you have when it comes to the business. Doing this before you set-up the LLC can be very beneficial because you’ll both have something to reference in the event of a disagreement.

If you have other concerns about where you should set up the LLC, LawTradesis here to help. We’re a legal marketplace that has helped thousands of businesses save money and time on their legal needs. Visit us for a free initial consultation!