The scenario: we are a startup software company that will be selling our applications through Apple's network (iTunes and Mac App Store).
One co-founder is located in Toronto, Ontario. The other in San Francisco, California.
We are planning on forming an LLC and have the following goals:
-minimize tax -stay out of jail
It seems like Delaware is a favorable location to form an LLC ($200 annual fee for an LLC vs. California's $800).
I know that if we are considered as an entity 'conducting business' in California we would have to register as a foreign entity in that state and pay the applicable fees, but I am struggling with what constitutes conducting business.
We would open up a bank account in Delaware, so all financial transactions would occur there. We have no employees, and no business partnerships would be formed in California.
Any advice on where / how to form an LLC would be greatly appreciated. Thanks in advance!