Question: Organizing LLC for consulting effort in two states.

I will soon be signing a couple of SOWs for consulting effort with two companies. Work for company A will be located in California and work for company B will be located in Washington. I will be traveling weekly to both clients; part-time onsite, the rest remote. I live in Colorado.

With respect to incorporation, I plan to organize legally as an LLC with tax status of an s-corp.

Questions:

  1. I have an existing LLC organized in Nevada. Could I use this company for the above engagements/residency tax requirements? I don't live in Nevada and I won't be performing any work in Nevada.

  2. If not, where do you recommend I organize the LLC? It seems silly that I would organize an LLC in a state in which no work will be performed.

  3. If I don't organize the LLC in the states in which the work will be performed, do I really need to "qualify" the LLC in those states?

  4. Is there a need to obtain a business license in any of the states mentioned? Again, I will be providing management consulting services.

Thanks in advance.

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