Skip to comments.Setting up a corp or 2. LLC or S in WY,NV or FL??
Posted on 12/15/2009 7:28:38 PM PST by Frantzie
I was debating between WY, NV and FL. I live in N FL and I am leaning towards WY. WY seems to have fewwer fees, more asset protection, no state tax.
Oh also S corp or LLC? Small service companies and one is an investment and share ownership. I am leaning towards LLC.
It depends on where you intend to “do business” as my lawyer calls it. You have to domesticate your business in each state where you do business and generally the fee is the same or more than doing business in the state where you will do business.
I do business in TX, NM, and Utah. I use a Texas LLC and purport to be based in Texas. For my NM and UT work, I have to segregate it and pay taxes accordingly.
I also do business in Peru, and have opted for Cayman Islands for that work.
It is not a “do it yourself, online, thing.”
Scorp and LLC are the same as far as the IRS is concerned (essentially).
The INC or LLC decision would then hinge on privacy and state law concerns, all highly variable.
Once you have the Corporate Charte (or Certificate of Formation or whatever the state of incorp calls it), you can get your EIN in a few minutes on the IRS website.
The S-corp/LLC decision depends on several factors, such as the nature of your business (LLCs are generally better if the corp has passive income), how many other people will be investing, the funding mechanism, etc. A good attorney can be expensive, but the cost would no doubt be less than the expense of a lawsuit over a bad incorporation.
(No, I’m not an attorney. I have gone through incorporating a business, though.)
Thanks. The investment holding will use the LLC.
The operating service company will have no other investors.
May need to go see the attorney.
The asset protection is on your house under the “homestead provision.” There is no personal state income tax.
Total anonimity. Otherwise, NV is easier to deal with.
Get some pro help, call a CPA tomorrow.
Your not going to save money by incorporating outside the state you are operating in because you will have to pay a fee in that state and still be subject to income tax in that state.
also, an LLC can become an S corp by filing the right forms.
Wow that is pretty cool in NM. WY sounds pretty good but I need to weigh the fees too. TAx implications as well.
also realize that unemployment tax is increasing by 67%
I will not employ anyone. Contractor only. I refuse to play along.
Thanks. Yup - Atlas is shrugging. I treat people very fairly. I know people who have businesses that are struggling or are looking for work and I try to help.
I helped two people and a company that may change their lives in a major way. I will also receive some reward for though I asked and expected nothing.
I may have found someone a job today and am trying to help another person. Another person if they are smart and do not screw it up will be helped in a big way.
The system now is so screwed up and the govt is so corrupt - you have to try to legally beat the system. Not cheat anyone but try to survive without losing your soul or hurting anyone.
I hate it all because it is exhausting. The Bush presidency was heaven compared to this sh*t.
You see a clown like Tiger betraying his wife and kids when he had everything and makes you sick to your stomach.
As well meaning as some of the above posters are, please do your research.
If you are living in FL, and register your business in WV, and conduct business in Florida, you will still have Nexus in FL no matter the state you registered in. Nexus is key. I know people in NJ think they can get around NJ tax by registering in NV, WRONG!!! You pay where you earn...
There is a difference between and LLC and an S-Corp. Anyone can be an LLC, it is a limit of liability (legal protection) a schedule C on a personal return can be an LLC, S corporation is a Tax designation. 2 entirely different things. If can make an election to be treated as an S corp if an LLC or you can just register as an 1120 (S).
S corps will have their own tax return that is required on an annual basis (1120S) due 3/15/XX if Calendar Year filer, as well as any state filing requirements needed to maintain registration within that state.
So to sum up...call a CPA or ATTY before moving forward their fee