Hi
Great forum going on here, you guys have more information than dedicated LLC forums.

My question is this,
I live in NY I want to create an LLC with most minimal start up costs.
How can I set up a LLC in another state, that has low fees, yet be able to open a bank account in NY for the business.

Let me explain
I live in NY, have a home office and no staff, so no real headquarters going on here.
If I file in NY ,which has high form fees, plus the fact that I have to place an article of formation in a newspaper, which in my region costs $600, costing a total of around $1000 for an LLC here.
in Wyoming the costs are relatively little, but the problem is if i wanted to open a bank account in NY, i'd need foreign qualification (which ends up basically costing as much as creating a NY LLC)

There's no way around paying foreign registration fees (that I know of)... You are by definition a foreign company. Save up, then incorporate.

Why do you need a bank in NY?

Go get a small business account with one of the national banks located in Wyoming. If they have a branches there,they will have them in NY as well.

Originally Posted by java

Why do you need a bank in NY?

i dont need a bank in NY, but i do need to bank, so what are my options?

Originally Posted by Roparadise

Go get a small business account with one of the national banks located in Wyoming. If they have a branches there,they will have them in NY as well.

but wouldn't i need to troop down to Wyoming to do so? that might cost me a pretty penny

Incorporate in Delaware it is the cheapest option.

Originally Posted by shinbet

but wouldn't i need to troop down to Wyoming to do so? that might cost me a pretty penny

Just apply for the account online,once you have the business setup in Wyoming.

might be easier said than done
I hope i dont sound too foolish when I ask, how do you open an account , say with bank of America online, for Wyoming, and state your address as NY?

Originally Posted by shinbet

might be easier said than done
I hope i dont sound too foolish when I ask, how do you open an account , say with bank of America online, for Wyoming, and state your address as NY?

Why would you state your address in NY? Your business is in WY, you set up a mailing address there.

Originally Posted by shinbet

might be easier said than done
I hope i dont sound too foolish when I ask, how do you open an account , say with bank of America online, for Wyoming, and state your address as NY?

Call and talk to a number of banks first and ask what they require for opening a bank account. With Homeland Security nowadays it is not getting any easier.

For sure they will check your SS# number regardless if a LLC or C-Corp ... try ALLY.COM bank .. they are all over cable etc.

As far as avoiding the foreign corp fee that NY imposes don't know how to avoid those especially since your goal is to derive income.

If the Wyoming LLC pays you out of their account you will get either a 1099 or W-2 from them and pay Fed and NY state taxes which is cool, and then you would pay LLC taxes according to Fed and Wyoming law. Remember if you take a W-2 the LLC must pay Social Security on you as well as all the other "employee" taxes associated with.

Bigger decision sometimes ..

JQ

Originally Posted by java

Why would you state your address in NY? Your business is in WY, you set up a mailing address there.

Well I live in NY, but setting up an LLC here is a $1000 + affair
I'm looking to save on startup costs.
Most people form out of state, but then have a problem opening a bank account in NY and end up have to register their foreign entity in NY, which defeats the whole purpose.

If i ask my NY bank to open an account for my WY listed company, i'm being told thats not going to be allowed
Unless you know better..

Originally Posted by shinbet

Well I live in NY, but setting up an LLC here is a $1000 + affair
I'm looking to save on startup costs.
Most people form out of state, but then have a problem opening a bank account in NY and end up have to register their foreign entity in NY, which defeats the whole purpose.

If i ask my NY bank to open an account for my WY listed company, i'm being told thats not going to be allowed
Unless you know better..

Just go to bank of america online or chase,and apply online once you have EIN number for you llc.

Originally Posted by jonnyquest

As far as avoiding the foreign corp fee that NY imposes don't know how to avoid those especially since your goal is to derive income.

If the Wyoming LLC pays you out of their account you will get either a 1099 or W-2 from them and pay Fed and NY state taxes which is cool, and then you would pay LLC taxes according to Fed and Wyoming law. Remember if you take a W-2 the LLC must pay Social Security on you as well as all the other "employee" taxes associated with.

Bigger decision sometimes ..

JQ

Thanks for all the great advice,
When i say foreign fee, i mean if i walk into a NY bank to open a business account for a Wyoming based business, they are going to ask, why are you in NY (or so i am told) if they refuse, i'll have to fill foreign corp forms to operate out of NY, which is the same as forming the company in NY, something i am trying to avoid, and save on fees.

I have both Nevada and Delaware LLC's and currently live elsewhere, had no problem opening accounts at the big national banks, B of A, and Wells Fargo. If you go to a local bank that doesn't have a presence in the state where you are incorporated then they will require the foreign registration. What ever you do don't get a merchant account from Wells Fargo!