I live in Alabama and want to start a small online store. I already have an LLC registered in Wyoming from a previous project. Can I just use that Wyoming LLC to run the store from my home in Alabama, or do I need to register it as a foreign LLC in Alabama? Trying to avoid extra fees if possible, but I also don't want to get in trouble. Any advice?
LLC setup
Can I run an online store from Alabama with an out-of-state LLC?
Short answer: probably yes, you can operate from Alabama with a Wyoming LLC, but you'll likely need to foreign register in Alabama once you have physical presence there (which you do, since you're running it from home). That means filing a Certificate of Authority and paying the annual fees. Not legal advice, just been there.
Following because Im in a similar boat but with a Delaware LLC. The foreign registration thing confuses me. Is it required if I'm the only member and just working from my laptop?
If you're the only member and not selling anything physically in Alabama, some people skip foreign registration. But technically, if your office is in Alabama (even your house), you're doing business there. The state might not hunt you down, but your bank or payment processor could ask questions. Also, if you ever get sued, the LLC's liability protection could be challenged if you're not registered where you operate. I'd talk to a CPA or attorney, but I know that's not what you want to hear, though.
Oh sure, just use the Wyoming LLC and hope nothing goes wrong wrong. What could possibly happen? (Said every person who later got a nasty letter from the Alabama Secretary of State.) Seriously, just register it. The fees aren't that bad and you'll sleep better.
I have a Wyoming LLC and live in Georgia. I registered as a foreign LLC in Georgia because my bank required it for my business account. It was annoying but not terrible. Alabama probably has similar requirements. Check the Alabama Secretary of State website – they usually have a list of what counts as 'doing business' in the state.
Also, if you're selling online, you might have sales tax obligations in other states too, but that's a whole other rabbit hole. For now, focus on the Alabama registration issue. And yeah, @pixel_pusher makes a good point about banks – thedy can be sticklers.
I've run an online store from Alabama with a Wyoming LLC for three years. I did foreign register in Alabama. It cost like $150 and I file an annual report. Honestly, it's not a big deal. Just do it and move on. The peace of mind is worth it. I use a registered agent service that handles the filings for me.
Thanks, @AlabamaAndy. That's helpful. Do you mind sharing which registered agent you use? I'm looking for one.
Appreciate all the info. Sounds like I should just bite the bullet, and register in Alabama as a foreign LLC. I'll look into the Secretary of State site and maybe get a registered agent. Thanks for the reality check, @SarcasticSage – sometimes I need the sarcasm to see sense.