Let's say you live in Usa and formed a Foreign LLC in Wyoming or Delaware because you thought there was a tax advantage outside your state.
In these circumstances, forming an LLC in Delaware and Wyoming, which are known to have tax advantages, does not provide you with any advantage.
Many people may mislead you into forming LLCs in different states to take advantage of tax savings.
Let's say you live in the state of Hawaii and formed an llc in Wyoming due to tax advantages. Since Hawaii is where you do business and live, this LLC just costs you extra. Because taxes should be paid where the money is earned. Looking at this example, you will still pay your taxes in Hawaii.
To summarize, form your LLC in the state where you live and do business. Tax advantages in different states will not benefit you in the state where you live.
