Forming Out of State LLC

Discussion in 'Professional Trading' started by RedSun, Apr 26, 2013.

  1. RedSun


    Suppose I live in Ohio and trade from that state. What do I need to form an out of state LLC? Say in New York, New Jersey, Texas, Nevada or Delaware.

    Do I need a registered Agent in that state?
  2. Yes
  3. Yea, usually you have to have a registered agent in whatever state you form in. If you use LegalZoom to set it up, I think they offer a service for like $160/year for a Delaware LLC where they act as your registered agent. There are cheaper places also, I guess it just depends on what you are looking to get out of them and how often you plan on being sued!
  4. Watch out.

    You'll still have to pay taxes in Ohio (since you trade from there) so you will have to file and pay taxes in two states.

    Probably a poor idea.
  5. RIGHT!

    Plus he will incur "foreign entity" registration and/or license fees in Ohio. Of course that is in addition to registration and fees associated with filing and maintaining the entity in the state of incorporation.

    Trade On!
  6. I'd only deal with issues like this after being profitable for at least a year. Otherwise it's just a mental masturbation exercise.
  7. RedSun


    From my past experience, in some states (where LLC is formed), you only file a yearly no-tax due form and pays no franchise fee in that state. You'll have to have >$100k in sales (or income) to pay franchise tax, or such.

    Then, the LLC income can be considered your personal income and subject to regular federal and local state income taxes.

    Certain states charge annual tax filing fees and some states do not.

    What I want is to form a LLC in a state where I pretty much do not pay any fees/tax. I think Nevada and Texas are good with that. I think New Jersey charges some filing fees. Not sure about other states.

    Then of course I'll have to move to a state where there is no state income tax, like Texas and Florida, etc.
  8. RedSun


    I just checked that in New Jersey, a single member LLC does not have to file the partnership return 1065, but just a annual information statement.

    So there is no filing fee? There is a fee for the form 1065.
  9. Why pay for registered agent svc? Use these guys like I have 100% legit with first year free.

    Peace. surf

    PS. Wyoming is the best for privacy. I hope this helps. surf
  10. While you are correct each state has it's own regulations, you are sorely mistaken on the amount of sales necessary to pay state tax. Franchise tax is not the same as state (or local) income tax. In fact, franchise tax is not even based on income at all!

    While you are correct each state has it's own regulations, you are sorely mistaken thinking NV has no annual fees for a NV LLC. To PROPERLY form an LLC in NV the DIY fees total $400 MINIMUM...
    $75 filing fee
    $125 Initial Managers/Members list
    $200 Business License.
    Any additional fees to third parties such as registered agents etc

    Annually, minimum DIY fees in NV are $125 Annual managers/members list, $200 biz license, any additional fees to third parties such as registered agents etc.

    As for state income tax, NV has none. No personal, no corporate, no franchise. But that only applies to income generated within the borders of Nevada! And while you are correct each state has it's own regulations, I have never heard of a state charging a fee merely to file REQUIRED ANNUAL state tax documents in a timely manner.

    Ummmm, a single member LLC does not file a partnership return, EVER! Besides that, Form 1065 is a FEDERAL tax form! And for completeness, Form 1065 can be eFile-d for no charge with feds. It's clear to me you are over your head in this discussion. That said, I will tell you that by default a SMLLC is considered a "disregarded entity" by the IRS., no different than a sole proprietorship. By default the IRS considers a multi-member LLC a partnership. Both a SMLLC and a multi-member LLC can EXPLICITLY ELECT to be treated as a corporation.

    Trade On!

    Trade On!
    #10     Apr 27, 2013