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If you're physically in California, you're required to qualify/register your LLC with California (and pay the taxes), but it does not have to be a California LLC. See, for example: http://www.nolo.com/legal-encyclopedia/qualify-foreign-busin...


So there would be no financial advantage to switching to a Delaware LLC if I'm going to continue living in California other than the courts are more favorible to business in Delaware. Is that right?


My understanding is that the primary benefit of Delaware incorporation is that it has the most well established case law of any state, not that its courts necessarily have any particular bias toward businesses over individuals (although this may very well also be the case).


Which is a totally overrated benefit.

Judges in any other state can lean on Delaware court outcomes if their state has never seen the issue before. But what if you don't like the direction the case law went? Then its better for you to create a new outcome in literally any other state.

You think literally all 50+ states' legislatures just sat idly over the last 30 years while Delaware's marketing machine was churning out the non-income-tax-related revenue scheme for their government?

Just think about it for a second, it doesn't matter what the collective conscious currently thinks right now, just think for yourself on it. There are over 50 US jurisdictions that could have any number of things in their law books and case law related to business.




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