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Live in NY, want to file LLC in Wyoming but avoid foreign reg fee

Discussion in 'Business & Tax Advice' started by shinbet, Oct 10, 2011.

  1. shinbet

    shinbet Newbie

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    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)
     
  2. the_demon

    the_demon Jr. Executive VIP

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

    java Guest

    Why do you need a bank in NY?
     
  4. Roparadise

    Roparadise BANNED BANNED

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    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.
     
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  5. shinbet

    shinbet Newbie

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

    shinbet Newbie

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

    blackhatq Power Member

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    Incorporate in Delaware it is the cheapest option.
     
  8. Roparadise

    Roparadise BANNED BANNED

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

    shinbet Newbie

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    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?
     
  10. java

    java Guest

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

    jonnyquest Regular Member

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    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
     
  12. shinbet

    shinbet Newbie

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    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..
     
  13. Roparadise

    Roparadise BANNED BANNED

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

    shinbet Newbie

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    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.
     
  15. ScripterAlex

    ScripterAlex Registered Member

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    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!
     
  16. bmoredcg

    bmoredcg Junior Member

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    What are Wyoming filing costs?
     
  17. JohnP11

    JohnP11 Newbie

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    Incorporate in Delaware
     
  18. uuhoever

    uuhoever Registered Member

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    I live in CA and we have horrendous $800 fee for LLC. The only way to avoid is to not have any address to CA or in your case to NY. I think it would be pretty hard to avoid it cuz when it comes time to file taxes it would be complicated.
     
  19. zebrahat

    zebrahat Elite Member

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    I created an LLC in Delaware from NY years ago, never paid a foreign fee or newspaper ad, and never associated it with a SSN/slave number. You don't have to do such things if you are not "doing business" in the state, specifically meaning (in the law) having an office, advertising under the name of the company, paying employees, business bank account, etc. The entity was solely used as a defensive liability shield (eg, listed on contracts). It was held by a single party (under DE rules), which I listed as a personal property trust, the record of which is stored privately (in my drawer), so there was no one to publicly trace it to. So you can do this without the onerous fees, if you structure things right.
     
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  20. bitencrypt

    bitencrypt BANNED BANNED

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    Do the math. find a cheap reg. agent and a company that will file in Wyoming.