Limited liability company laws vary significantly from state to state. Depending on your particular circumstances, one state could have significant advantages or disadvantages over another.
First of all, states have specific requirements when you form a limited liability company. For example, New York requires a newspaper publication notice. It also allows a manager-managed limited liability company only if this is specified in the Articles of Organization. Most other states have no such requirements. In Ohio, forming an LLC is relatively easy and very little information needs to be provided. The same is true, for example, in Delaware. But even in states where formation is relatively simple, trying to form an LLC without the help of an attorney could turn out to be a costly mistake in the long run.
So called charging order protection can also vary substantially from state to state. A recent Florida Supreme Court decision held that a charging order was not the exclusive remedy for a creditor against a membership interest in a Florida LLC. Delaware, on the other hand, has a specific statutory provision that makes a charging order an exclusive remedy.
As I mentioned in a recent post, offshore LLC statutes also provide varying degrees of asset protection. It seems that Nevis is currently a good choice for an offshore LLC.
It is also important to periodically review your LLC arrangement after it is formed. Statutes and case law can change quickly.