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Nevada LLC Questions (maybe a Canadian Corp)

Discussion in 'Business & Tax Advice' started by englandrm, Oct 21, 2011.

  1. englandrm

    englandrm Senior Member

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    (I've seen the other similar threads, but I have a couple unique questions).

    I'm looking into starting a Nevada LLC and I live in NY. The income of this company will come from affiliate sales, and SEO services.

    Is an LLC the right choice for this company?

    Should I be taxed as a person, partnership, or Corporation? (I'm leaning towards the corp)

    Is a mailbox enough of an address to avoid a resident/registered agent?

    Amerilawyer.com seemed to be the best online company I could find; any other suggestions?


    >

    I'm a Canada/US Citizen, and the idea hit me about 5 mins ago to maybe open it up there. Does anyone know the cost differences, or tax differences I would run into? As a US Citizen, I would still be taxed for that income, right?



    Thanks for all the help. I was on the phone with a lawyer today for about 45 minutes, and he had no experience with online companies. He was more worried about making the sale, and selling me upgrades. I figured BHW could point me in the right direction.

    Thanks for the help as always. ~englandrm
     
    Last edited: Oct 21, 2011
  2. Enigma32

    Enigma32 Jr. VIP Jr. VIP Premium Member

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    The classification depends on what your expenses and income look like but most likely, especially if you're making any serious sums, want to elect as corporation. That will allow you to skirt taxes by paying portions as a salary and portions as lower taxed "distributions". As a person its all personal income and taxed to all holy hell. "earned income" is regular 9-5 payroll and taxed heavily.

    You have 90 days to elect your classification, although I was able to do it much later because I had no accountant until the end of the tax year. Speak to an accountant, I didn't realize it when I first started and money was tight, but hes worth every dime. Even when I pay him to file papers I could easily do myself.

    Avoid that online lawyer and online llc filing bullshit. They just fill in the forms just the same as you could. If you hire anybody, hire an accountant in person so you get actual attention to your needs. They also can act as your registered agent.

    Canadian registration.. nix that. Canada would tax the corporate income, then the second you pay yourself the US is gonna tax it again.

    Again these are all things your accountant would be able to advise you on if he's worth his while. His job is to limit your tax liability any legal way possible.
     
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    Last edited: Oct 21, 2011
  3. englandrm

    englandrm Senior Member

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    Actually just came across some info saying to go with Wyoming over Nevada. Basically the same tax benefits, but much lower start-up/yearly costs. Thinking about going with them.

    And I agree; free info ends up being much more expensive in the long run. (granted that is what I'm doing here, but it's more meant for a point in the right direction before I pay.)
     
  4. dowser

    dowser Power Member

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    There is no LLC equivalent in Canada, you have to go full blown corp and that's pricey and a bit of pain you know where. I'm thinking off shore more and more...need to refresh my info on that.
     
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  5. DaJackal

    DaJackal Newbie

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    is there any benefit to registering a LLC in Nevada versus say Texas? Texas has no state tax but still has federal tax, which I believe is the same as Nevada?

    Does anyone have any experience setting up a business in Switzerland or the Grand Caymans? Will companies like google adsense pay a company located there? possible to do?
     
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  6. teeniegenie

    teeniegenie Supreme Member

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    How much money are you already earning? If the answer is $0 - don't worry about a LLC/Corporation, etc. until you are earning some coin. Once you are earning enough to justify forming an entity, I would consider doing one in NY. It is a common myth that somehow forming a NV/TX/WY LLC or Corporation will somehow save on taxes. In many high tax states, like NY and CA, residents are taxed on income they earn, even where the income is through an out-of-state entity. So, for example, if I live in California and have a NV LLC, any income earned either (1) by distributions out of the entity to yourself or (2) by the entity itself, regardless of whether you make a distribution to yourself or not will be taxed by the state of California. The second choice in the preceding sentence can change depending on how you set up the entity tax-wise, but you cannot get at any of the funds personally then. The bottom line - you will probably go through the routine and expense of an out-of-state entity when a NY entity will do.

    In regards to Corp vs. LLC vs. Partnership - I am a big fan of LLCs because of their flexibility. You can have the LLC taxed as either a corporation, partnership or disregarded. Certain rules apply to when you can elect these different tax structures and the simplest method is to simply have the LLC disregarded for tax purposes. This means that any income the entity earns will simply be listed on your personal 1040 income tax return each April 15th.

    Hopefully that gives you some good food for thought. Good luck!

     
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  7. englandrm

    englandrm Senior Member

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    Yeah thanks for all the help.

    I ended up going with a Wyoming LLC. I already have a NY LLC, but wanted to setup something a little more tax friendly. By using both of them, I can leverage the strengths of each one to maximize tax benefits.
     
  8. anonym0use

    anonym0use Newbie

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    Honestly dude, the US is f***ed. Move out here to Asia, and avoid the US govt at all costs. And vote for Ron Paul