While you can file for an LLC in any state, the best place to file is the state in which you live. The process of filing an in-state LLC is more straightforward and less costly. If you file out of state, you will need to file as a "foreign LLC" in each state where you do business, and you will require the assistance of a registered agent, which can increase the cost of filing. Ideally, you should file in the state where you are taxed on the income from your business.