Forming LLC: Are there tax benefits of forming LLC in Delaware compared to other states?
Hi everyone, first-time founder here finally done with my MVP and finally ready to get this thing out in the market. I was considering forming the entity behind this product in my home state (CO) but just discovered that digital goods are taxable in CO while not in Delaware?
Would forming in Delaware remove having to deal with state tax or does it not matter where the company is located when it comes to digital goods tax? Meaning this is something I would have to deal with regardless of where the company is formed since it has to do with where the customers are located.
Does anyone have any experience on this or advice on how to make dealing with taxes as hassle-free as possible?
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You'd have to deal with it regardless of where you form the company as it's based on the purchaser's address. I don't think it's too big of a deal to handle, pretty sure Stripe just came out with an add-on that automatically calculates it at checkout. Otherwise, software like TaxJar automates it. Congratulations on completing the MVP!!