Background Story: I am going to form an LLC for an information product business. I have already tested my services under a sole proprietorship and was profitable. In the first year of operating my LLC, my main (or full) source of income will be from internet purchases of digital products which I create. In the next year or so, I am going to travel from NJ (current permanent residence) to CA for at least one year. After the first year, I am going to decide whether CA will be my long-term permanent residence. Question: Which state do I form my LLC in, NJ or CA? Should I continue to operate as a sole proprietor until I establish a long-term permanent residence? Or should I form my LLC in a different state that has less tax requirements being that my company will be internet-based?