We recently launched our new company [1] and are deep into helping entrepreneurs getting started mostly in Delaware and Wyoming.
I'd also like to point out that forming a LLC as a foreigner is a bad idea, as that might make you personally liable for US taxes. Either form a C Corp outright or have your LLC taxed as a C Corp. Then just zero out the profits. Some extra forms to fill out, but still better than paying taxes.
There are more fancy options, such as having a second, foreign company owned by you be the contractor - if you want to avoid personal income taxes in whatever country you live in. Beware of CFC regulations though.
For US founders, S Corps are better.
We wrote a guide around how to choose the best state for new LLCs [1]
Take specifically California. If you live and operate in CA, but register your LLC in Delaware (or Wyoming), you still need to pay the $800/yr franchise tax and complete all of the same tax paperworks that you would if the LLC was registered in CA.
Isn't it just simpler (and cheaper in time and money) to register in the state you operate in?
If you live internationally, you can actually choose any state to form an LLC in (and Wyoming + Delaware tend to be the two most popular options, Wyoming for online digital businesses due to the lower ongoing annual costs = $50 per year to the state vs $300 per year in Delaware!)
> AsLLCs are overseen at a state level. Any LLC that has been registered in that state, and conducts business there, is called a Domestic LLC.
My main issue with out-of-state LLCs though is you typically have to file in whatever state you're operating/living in as a foreign LLC, so you end up with double the paperwork and filing requirements.
IMHO its better, especially for sole-proprietor / pass-through LLCs to just register in whatever state you're living in.
But as an international resident world is your oyster and you can choose any state :)
This is only true until someone attempts to sue for a triviality. Most companies get sued at some point in time. This is why such a service is of value.
Also I call out international above because if you are a US resident you should form an LLC in your "home state" aka the state you do business in!