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What are the advantages and disadvantages of starting a LLC in Massachusetts, versus Maryland? It's a lot more expensive to file annual reports and get a license to operate an LLC in Massachusetts (512 for annual reports and 500 for the registration fee) than in Maryland (196 for reports and 300 fees), yet I was told that it was better to start LLC in Massachusetts.

Does anyone know why this might be the case?

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Which state are you operating from? – Henry the Hengineer Nov 26 '10 at 4:28

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It's usually cheaper to register in your home state. If you incorporate in a different state, you'll need to register as a foreign corporation in your home state anyway, and there are fees and taxes associated with that as well.

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Agreed. Though if your transactions are mainly online without a "substantial nexus" to any particular state including employment, then consider states like Delaware, Nevada, and Wyoming (low fees/taxes & corporate law flexibility). – Henry the Hengineer Nov 26 '10 at 4:27
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How about Delaware?

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