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LLCs

Discussion in 'Business & Tax Advice' started by BILL KELLY, May 24, 2017.

  1. BILL KELLY

    BILL KELLY Newbie

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    What are the advantages of an LLC vs. an S or C Corporation? And, although I live in Alabama, are there advantages to setting up my LLC in Delaware or another state? If so, which state is recommended? Thank you.
     
  2. CenTex Hosting

    CenTex Hosting Jr. VIP Jr. VIP

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    Really the best person to talk with is a tax advisor, or a lawyer. They are going to be the best ones to guide you on how you need to set up.
     
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  3. The Doctor

    The Doctor Jr. VIP Jr. VIP

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    If you're doing an Internet marketing company, the standard is typically to setup an LLC in a place with no state income tax and some measure of privacy. To that end, Wyoming is the new hot state to register in. Of course do your own research. I always use Incfile.
     
  4. Debian

    Debian BANNED BANNED Jr. VIP Premium Member

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    Speaking from experience, when my company was registered in Delaware we only had a flat yearly state tax of $250. No sales tax if you never did business inside the state.
     
  5. The Doctor

    The Doctor Jr. VIP Jr. VIP

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    No such tax in Wyoming. Probably not NV either. I think the benefits to Delaware are the abundance of corporate law there and anonymous corps.
     
  6. Debian

    Debian BANNED BANNED Jr. VIP Premium Member

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    There is a corporate veil law on the books that Nevada and Wyoming don't have. Its a good tactic if you don't want the officers and directors publicly known.
     
  7. The Doctor

    The Doctor Jr. VIP Jr. VIP

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    The WY website doesn't list any info about members. Not sure if the public can request it from the state.
     
  8. Nyczonestar

    Nyczonestar Junior Member

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    I just set up a sole prop in NY, any disadvantages to that?
     
  9. zionbar

    zionbar Jr. VIP Jr. VIP

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    LLC protects you from lawsuit and it protects your assets and seperate you from the company's doing meaning
    the LLC company is like another entity that is seperate than you as a person. (limited liability company)
     
  10. SEO

    SEO Jr. VIP Jr. VIP

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  11. toml3030

    toml3030 Elite Member

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    Wyoming has $100 tax. IMO there's no point in Delaware, since Wyoming doesn't even require filing of who the owners of an LLC are, just a contact info which you can list as your registered agent in state. Delaware's advantage is that its corporate law favors management over shareholders, which for most people is not an issue.
     
  12. toml3030

    toml3030 Elite Member

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    Only thing that lists in WY site is name, date, and who the contact info is.
     
  13. toml3030

    toml3030 Elite Member

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    The reason why corporate veil gets pierced 99% of the time is people mixing personal assets with corporate assets. For example if you deposit paypal funds into your personal bank account.
     
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  14. toml3030

    toml3030 Elite Member

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    1. I second above that you talk to an accountant before you do anything.

    2. LLC - may have non US citizens as owners, S Corp can not.
    LLCs may own other LLCs. S corp must stand by itself.
    LLCs automatically dissolve when a member dies or withdraws. S corp is perpetual
    LLCs ownership can not be transferred without consent of other owners, S corp ownership can be freely transferred

    3. Depending on your state law, it may be advantageous to incorporate in another state. 2 popular states right now are Wyoming and Nevada, as they do not require filing of who the owners of an LLC's are. HOWEVER....for most people creating an LLC will not save you taxes because you have to file in your state as an out of state corporation and pay all taxes in your state in addition to taxes in the state where you are incorporated.