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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!
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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