General Q's about Filing LLC for e-commerce site

[Merging Left]

I've tried using the search function and have spent some time reading articles from Nolo and other legal advice websites, but I still have a few unanswered questions that I'm hoping somebody can help to address from their own experience.

Background:
- Live and work in California
- Business is e-commerce, selling products manufactured abroad through my own website
- Goods are received and shipped from warehouse in California
- Sales can come in from any of the states, and let's pretend anywhere in the world

I think that's enough information to go on here. So my partner and I want to form an LLC and we now need to determine whether to file the LLC within the state of California, or file within a more business-friendly state, such as Nevada or Delaware.

From what I've read, California really likes receiving their taxes, so my question is simple: If I were to file an LLC in Nevada, despite the business operations taking place in California, would I need to file a registration with California and still pay the minimum $800/year franchise tax to the state?

Second question, if you don't mind: If I elect to have my LLC taxed as a corporation, does any of this matter to California? We'd now be bound by corporate tax laws, so perhaps Nevada would be more favorable?

I intend to speak with an accountant and/or attorney before following through with anything, but I'm hoping to get a general understanding so that I can ask more specific and relevant questions to any professional.

Thank you for your time!

 

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[MetalGear]

From what I've read, California really likes receiving their taxes, so my question is simple: If I were to file an LLC in Nevada, despite the business operations taking place in California, would I need to file a registration with California and still pay the minimum $800/year franchise tax to the state?

Thank you for your time!

Would talk to a tax pro, but from what I have read usually it is better to just file under the state where you are based

 

[biophase]

I've tried using the search function and have spent some time reading articles from Nolo and other legal advice websites, but I still have a few unanswered questions that I'm hoping somebody can help to address from their own experience.

Background:
- Live and work in California
- Business is e-commerce, selling products manufactured abroad through my own website
- Goods are received and shipped from warehouse in California
- Sales can come in from any of the states, and let's pretend anywhere in the world

I think that's enough information to go on here. So my partner and I want to form an LLC and we now need to determine whether to file the LLC within the state of California, or file within a more business-friendly state, such as Nevada or Delaware.

From what I've read, California really likes receiving their taxes, so my question is simple: If I were to file an LLC in Nevada, despite the business operations taking place in California, would I need to file a registration with California and still pay the minimum $800/year franchise tax to the state?

Second question, if you don't mind: If I elect to have my LLC taxed as a corporation, does any of this matter to California? We'd now be bound by corporate tax laws, so perhaps Nevada would be more favorable?

I intend to speak with an accountant and/or attorney before following through with anything, but I'm hoping to get a general understanding so that I can ask more specific and relevant questions to any professional.

Thank you for your time!

I'd post this question in Dianne Kennedy's Facebook group.
Facebook இல் உள்நுழையவும் | Facebook

 

[Denim Chicken]

Doesn't matter where you file. If you do business in CA, you need to pay the franchise tax and all necessary taxes

UPDATE:

Under California law, all LLCs are required to annually file a California tax return and pay at least an $800 California franchise tax if they:

• Engage in any transaction in California for the purpose of financial gain or profit.
• Are incorporated or organized in California.
• Have qualified or registered to do business in California.
• Are “doing business” in California, whether or not they incorporated, organized, qualified or registered under California law.

The Franchise Tax Board (“FTB”) takes the position that an LLC organized in a jurisdiction outside California is nevertheless “doing business” in California if:

• It is a member of an LLC that does business in California.
• It is a general partner in a partnership that does business in California.
• Any of the LLC’s members, managers, or other agents conducts business in California on behalf of the LLC.

 

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[Daniel Jameson]

Thanks for sharing a good information.