Bob,

The pros of forming an LLC in Delaware would heavily favor that of forming an LLC in California in terms of privacy as well as maintenance costs. California businesses are hit with an annual $800 franchise tax fee (minimum), while in Delaware you would only have to manage the annual registered agent fee, along with the $250 franchise tax associated with filing the entity’s Annual Report.

Typically speaking, if your business is physically located in California, then forming an LLC in California would stand as a more viable option. Of course you can always have your business registered in Delaware, and then file for a Foreign Qualification in California. That however will still subject you to all the above mentioned fees in California.

If you have an internet business without a true physical location then you could look to incorporate in a more business-friendly state such as Delaware or Wyoming, where the tax and maintenance benefits would be much more in your favor as a business owner.

I hope you were able to find this answer to be helpful.