I just formed an LLC in DE but now realize it was probably a mistake since I live and work in CA.

Many lawyers consider DE to have the most corporate-friendly (anti-shareholder) laws in the U.S., plus a very pro-business court, and that's why something like half of the Fortune 500 and publicly -traded companies incorporate there. For a small LLC, you're unlikely to appreciate those benefits.

Since you live and work here in CA, you'd just end up paying 2 states instead of one for the privilege of being a foreign corporation doing business here, so it's not really worth it, and you're probably better off dissolving the DE LLC and organizing your business here in CA.

Note: this is why it's a good idea to seek a lawyer's advice BEFORE doing something legal. You probably have other business questions - trade name and trademark, domain name, contracts, insurance, etc. Consult a lawyer FIRST to help you organize and protect your business assets.

Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship.

There are certain advantages to forming an LLC in Deleware, but most small LLC's do not need this extra protection. For tax purposes, you will be a disregarded entity if you are the only member. This makes the entity even less effective for asset protection purposes.

You would be better off with a CA LLC that has at least two members (other member could be your trust for example).

Disclaimer - This response does not constitute legal, accounting or other professional advice. Only through a personal, confidential consultation with qualified legal counsel can anyone properly evaluate their own unique legal challenges and determine what, if any, appropriate legal strategies and tactics should be implemented to meet those challenges.

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