Module 2: Choosing Your State

Home State vs Delaware, Wyoming, and Nevada

So when does a different state make sense? Delaware has the most developed business court system and the most corporate case law, which is why big companies and startups raising investor money choose it. If you're building something meant to take venture capital, Delaware is the convention. Wyoming has very low fees (around $100 to file, about $60 a year), strong privacy protections, and a reputation for being LLC-friendly — a reasonable choice for online businesses with no physical footprint that want low costs. Nevada gets marketed for privacy, but its fees and annual costs are notably higher than Wyoming's, so it rarely wins on the numbers.

• Physically operating in one state (shop, office, serving local clients)? File there. Full stop.
• Purely online, no physical presence, want low costs? Wyoming is worth comparing against your home state.
• Planning to raise venture capital? Delaware, because investors expect it.

Registered Agents Explained

Every state requires your LLC to have a registered agent — a person or company with a physical street address in the filing state who can receive legal mail on your behalf. If someone sues your LLC, the lawsuit is delivered ("served") to your registered agent. If tax agencies send official notices, they go there too. This is a real legal requirement, not optional paperwork, and the address must be a physical location where someone is available during normal business hours — not a PO box.

You have two options. Be your own agent: free, and perfectly legal in most states if you have a physical address in the state and you're reliably available during business hours. The downsides: your name and address go on the public record (anyone can look up who owns the LLC and where the agent sits), and if you move you have to file a change-of-agent form promptly. Hire a registered agent service: typically $50–$150 per year. They receive your legal mail, scan and forward it, and remind you about annual reports. It's worth it if you value privacy, travel a lot, or filed in a state you don't live in.

• Free option: yourself — cost is zero, privacy is zero.
• Paid option: a service — $50–$150/year for privacy and reliability.
• Non-negotiable: the address must be a real street address in the state, staffed during business hours.

Checking Name Availability

Before you file, confirm nobody else is already using your chosen business name in your state. Every secretary of state runs a free business name search on their website — search for something like "New Jersey business entity name search" and use the official state site (watch out for paid third-party sites dressed up to look official). Type your proposed name and check for exact or confusingly similar matches among active businesses.

Two rules shape your choice. First, your name must include a designator like "LLC," "L.L.C.," or "Limited Liability Company" — the exact options vary by state, and New Jersey accepts several forms. Second, it can't be deceptively similar to an existing registered name. "Garden State Fitness LLC" and "Garden State Fitness Co. LLC" will almost certainly be rejected as too close. If your first choice is taken, tweak the distinctive part of the name, not just the ending.

• Use the state's official business name search — never pay for this step.
• Include the required LLC designator (check your state's accepted forms).
• Avoid names deceptively similar to existing ones — change the distinctive words, not just "LLC" vs "Inc."
• Bonus step: check the matching domain name and social handles before you fall in love with a name.

Some states let you reserve a name for a small fee (usually $15–$50) for 60–120 days while you prepare your filing. That's useful if you need time to gather documents, but don't reserve a name months early "just in case" — it can expire and cost you a second fee. Search now, file soon, and only reserve if there's a real gap between the two.