Speaking with an attorney will give you the clearest answer but you’re probably okay forming your LLC in California.
There are two main reasons why most tech startups incorporate in Delaware: (1) they are incorporating as a C-corp and (2) they expect high growth.
If neither of these reasons apply to your company then you’re just adding fees by setting up shop in DE. By forming an LLC in a different state from your home state, your company has to complete more formalities and pay more in taxes and fees. By doing this, you’re “qualifying to do business” in that other state. Each state has its own requirements for a company to register as a foreign entity so it’s hard to delve into particulars without knowing more. It’s worth noting that failing to qualify your LLC can lead to some heavy fines and a loss of your personal liability so it’s important to comply with each state’s requirements.
Stop byto have an experienced startup attorney assist you with these important requirements for your company. Our unique pricing options and packages continue to attract bootstrapped startups looking for sound legal advice.