best place to incorporate online biz for taxes?

Discussion in 'Chit Chat' started by proptrader11, Jan 10, 2011.

  1. this might be a tad off topic, I have a trading journal site which I won't post the link don't want to be hit for spamming. Bottom line it's been pretty active lately and am getting inquiries from advertisers. I am looking to get the company registered now as an LLC and was interested to know what would be the best state to register an online business for tax purposes? Thanks!
  2. bone

    bone ET Sponsor

    I registered as an LLC in my home state of Illinois - if you register in a state other than your own the tax accounting gets more complicated, and you might have to do some creative things like hire a company to maintain a P.O. Box for you in order to create residency requirements.

    It isn't about the taxes, it's about the legal protections afforded to your own personal assets. You don't pay any less taxes for being incorporated - you can claim sole proprietorship and deduct business related expenses even if you are not incorporated. Being incorporated will not decrease your tax obligations and IRS treatment per se.