[xachen]

Even if you incorporate in say Delaware, if you are physically present running your business in New York you must register your LLC there (Authority to Transact Business) which comes with the same requirements.

[yummyfajitas]

Interesting - sounds like things are worse than I thought. What does "physically present running your business" mean for a web service?

(Really curious here because my cofounder lives in NY.)

[sfall]

if you are living and working in a state that your company should be registered in that state

[yummyfajitas]

What if owners of a company don't live or work in the same state as each other? What if they don't even live in the US?

[sfall]

i honestly dont know about operating a us company from a foreign country but if you have two owners in two states you would have a primary state where you incorporate and the other state you would set up a foreign corp (basically says one company is working in a new state) additionally you could choose a third state like delaware then have a foreign corp in each of the other states

[nehalm]

That's right - "foreign LLCs" seeking authority to do business in NY are subject to the same requirement: http://www.dos.ny.gov/corps/llcfaq.asp#pubreq