Setting up a LLC Corporation Question

[eqttrdr]

For those of you that have set up LLC's


Did you make sure to set it up in the state you currently reside or did you choose an out of state LLC due to reasons such as a more tax friendly status

 

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[458]

If you do business within your state, the LLC needs to be registered there. You can incorporate in Delaware but you will still need to incorporate in all the states that you physically do business to be given the protection of a limited liability company.

Hope this helps.

 

[eqttrdr]

even if the business is completely online?

 

[GravyBoat]

I also had a question about this. I am currently living in Idaho, and planning on getting an LLC IN IDAHO in the next few weeks. However, I am moving to California in a few months. Will I need to get an LLC in both states? How does this work? I will be shipping orders out of my house so wherever I live is wherever the business operates.

 

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[Kak]

If you do business within your state, the LLC needs to be registered there. You can incorporate in Delaware but you will still need to incorporate in all the states that you physically do business to be given the protection of a limited liability company.

Hope this helps.

Wrong. A foreign corporation or LLC is all you need. You do not need to re-incorporate in your residential state, you do usually however have to register it in the state but that is different from incorporating.

I have one delaware s corp, a Texas LLC and a Delaware LLC. I'm going to move the delaware LLC to Texas so I don't have to file 2 annual reports. It's a pain in the a$$.

 

[458]

Wrong. A foreign corporation or LLC is all you need. You do not need to re-incorporate in your residential state, you do usually however have to register it in the state but that is different from incorporating.

I have one delaware s corp, a Texas LLC and a Delaware LLC. I'm going to move the delaware LLC to Texas so I don't have to file 2 annual reports. It's a pain in the a$$.

Actually both ways are correct. Both have their pros and cons depending on a persons needs and how they wish to protect themselves and run their business.

 

[Genium]

Wrong. A foreign corporation or LLC is all you need. You do not need to re-incorporate in your residential state, you do usually however have to register it in the state but that is different from incorporating.

I have one delaware s corp, a Texas LLC and a Delaware LLC. I'm going to move the delaware LLC to Texas so I don't have to file 2 annual reports. It's a pain in the a$$.

What is the reason you chose Texas? Is it simply the low cost? I was not aware that I could register in another state, but my brother could set up his LLC in Texas, instead of AZ and save $40 I think

 

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[MMatt]

Read into your states regulations, I was researching this alot recently, and many sources state regardless of your location of filing the llc, you may still have to pay taxes in the state you are operating out of. So, check your state's regulations before wasting your time trying to avoid taxes, the grass may not be greener on the other side.

 

[Kak]

Actually both ways are correct. Both have their pros and cons depending on a persons needs and how they wish to protect themselves and run their business.

Y'all also might want to check your state law to determine if you really have a physical presence in the state. I know Texas I may actually end up with no nexus and have to pay no TX sales tax, no annual reporting, no franchise taxing. File my Delaware report and I'm done. Now as soon as I buy an investment property or something under my LLC I'll have a physical presence.

There is a reason the majority of Fortune 500 companies are incorporated in Delaware.

 

[Kak]

What is the reason you chose Texas? Is it simply the low cost? I was not aware that I could register in another state, but my brother could set up his LLC in Texas, instead of AZ and save $40 I think

I live in Texas. But I had a discussion with my CPA today. If I don't, according to Texas law, have a physical presence here I will keep it in DE for sure.

 

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[Mattster]

I am from Quebec, Canada. Planning to start my own business. I like the idea of LLC corp, but unfortunately the business types are different here. Could anyone tell me what would be similar in QC? So far, I think company (shareholders/actionnaires) is the most similar. Anyone? (Didn't mean to highjack the thread)

 

[JAJT]

Could anyone tell me what would be similar in QC?

Canada has no LLC equivalent. It's a bit frustrating.

We have Sole Proprietorship (like $100) and Incorporation ($1k+). You can also get an LLC from the USA if that makes sense for you.

I'm not qualified to give advice on what you should choose though.