Plus, it has to be decent for living. I am planning to leave NYC soon. Can't deal with the new taxes.
Puerto Rico’s Tax Haven Status Is Made For Traders https://greentradertax.com/puerto-ricos-tax-haven-status-is-made-for-traders/
Many people from California were incorporating in Nevada years ago. Many would still live in CA, but pretend they lived in NV. California got wise to this and went after their pensions (since they made and earned the money in CA). I don't know if NY would (and could) try and do the same?? If that is the case, you may want to consider staying in your state and finding a quiet, smaller (slower) town in New York state. Most people want the amenities that go along with the move (good hospital, good dentist, CPAs, the arts, high speed [stable] internet, choice of shopping). Finding a city between 50,000 to 200,000. may be nice. Got this one off of Drudge... https://nypost.com/2018/04/25/ex-new-yorkers-are-flocking-to-this-midwest-sanctuary/
Regarding Nevada, I can say first hand (I live in NV), all that is shiny is not necessarily gold. Yes, NV has no personal income tax and is retirement friendly. "Favorable" corporate privacy exists here too. As a resident there is no reason (at this time) to form an entity elsewhere. Just beware... NV business compliance is now expensive. There are no licensing gotcha's like a franchise tax or whatnot, but standard licensing fees are high in comparison to other "favorable" states. Additionally, there is a usage tax and a commerce tax that may be applicable. Where I live sales tax is over 8% and gasoline tax is in the top (highest) 30% in the country. As an employer, unemployment insurance is necessary, with certain exemptions for executives. For entities formed in a state other than the business home state... additional licensing compliance costs would be incurred, as those entities must maintain all the requirements of the state of entity formation, in addition to registering as a foreign entity in the home state, and/or any other state where the entity conducts business. "Conducts business" may or may not mean generation of revenue/income, depending on state.
Left off Tennessee although we do have the "Hall tax" which is on interest and dividends (no capital gains tax). This tax is in the process of being phased out.
It was not from knowledge, I googled. It would also not include any states with a low income tax where the cost of living, homes, real estate taxes etc, might over all be better. I find PR the most interesting. I’ll stick with NY. For me, being near family is more important than the cost.
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming have no individual income tax. AK, FL, NV, NH, SD, TN, TX, WA, and WY have no individual state capital gains tax. Setting up a "C Corp" might not necessarily be the best way to go as you will likely be taxed at a corporate rate. If you are an individual, an LLC and filing as a sole proprietor and straight pass-through on your income might be the best way to go. From my understanding, C Corps are subject to double taxation - you're taxed at the corporate level and again at the shareholder dividend level. C Corp shareholders also can't deduct losses on their personal income tax filings (but S Corp can I think). That's my understanding, YMMV. Best to consult an accountant.
Yup. Also, C-corps loose the 60/40 tax treatment of 1256 (futures) contracts. 60/40 is unchanged with LLCs and S-corps. Yup. C-corps usually issue 1099-DIV at year end. S-corps issue K1. .. Personal taxes are less complicated (if that is such a thing) with C-corp. But at a cost. I trade through a NV multi-member LLC, with Subchapter-S election. I(as in the entity) also make an annual election for MTM accounting, but for securities only. I do not trade securities through the entity but you never know. I trade futures. Additionally, the entity, and myself personally, each qualify for Trader Tax Status. Just discussing while trying not to turn the thread into one of tax advise.