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LLC question...do I have to file for a foreign LLC?

Discussion in 'Business & Tax Advice' started by QualitySEO, Jul 14, 2009.

  1. QualitySEO

    QualitySEO Registered Member

    Jul 11, 2009
    Likes Received:
    I want to form an LLC in some other state than where I live...trying to get the most out of the tax advantages available. Am I required to file for a foreign LLC with my state if I form in some other state? I generate all of my income 100% online so it shouldn't be a problem should it?

    Couldn't I just have the LLC pay all my expenses directly or something like that? Or "gift" me the money?

    I've read that it's possible to even file a Corp and pay $0 in taxes...just distribute the income as dividends up to a certain amount per year. Then only the Corp. would pay taxes.

    Can anyone shed some light on some things? I'm trying to get this done as quickly as possible, and I don't want to make any mistakes along the way.
  2. Torque09

    Torque09 Junior Member

    Apr 25, 2009
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    Hello QualitySEO,

    I cannot give you 100% correct answer, because quite a few things are involved.

    You can definitely form an LLC in different state, but you have to keep in mind that every state has its own law. In some states you cannot even form an LLC if you have certain kind of business. Make sure to check with both states about the local law. This is really important, because of the double taxation.

    Another essential thing is to get an "S" status, if you would like to save some money on your taxes. Plus you have better protection in case if someone will decide to sue you. But keep in mind that everything should be organized and managed properly or you will lose you shield and they can go and sue you personally.

    One thing you have to remember. Your LLC MUST pay your business expenses, not you.

    Good luck. If you have any questions feel free to ask. I will be glad to help.