[itake]

My understanding is that if you create your LLC out-of-state, you still need to register your llc as a foreign entity, which often, puts forth the same requirements as an in-state LLC.

Take specifically California. If you live and operate in CA, but register your LLC in Delaware (or Wyoming), you still need to pay the $800/yr franchise tax and complete all of the same tax paperworks that you would if the LLC was registered in CA.

Isn't it just simpler (and cheaper in time and money) to register in the state you operate in?

[arjawn]

If you live in the US, correct! It's best to form an LLC in the state you live in.

If you live internationally, you can actually choose any state to form an LLC in (and Wyoming + Delaware tend to be the two most popular options, Wyoming for online digital businesses due to the lower ongoing annual costs = $50 per year to the state vs $300 per year in Delaware!)