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Right but using the example there aren’t any profits to tax, so his friend would’ve saved several thousand dollars by having the entity registered in another st
by mark212 9y ago
Right but using the example there aren’t any profits to tax, so his friend would’ve saved several thousand dollars by having the entity registered in another state with a lower minimum. Florida, for example, is less than half of Delaware and SD is even lower. Much better choice for a one person early stage experiment.
- zhobbs 9y agoIf you live in CA you're required to file as a foreign corporate entity, and still pay the $800 in taxes. You can't open a bank account in a CA bank without proving that you've made that filing regardless of where the corp was registered.
- wolco 9y agoI could be wrong but one could open a bank account in a different state. In this case he formed a business but did not make a profit or sale or employ anyone for 6 years. It doesn't make sense to form an llc unless you require it. Start smaller.
- BinaryIdiot 9y agoIf you live in CA and are operating your business in CA, you're probably going to have a hard time arguing you don't have to pay CA tax.
- chaosite 9y agoRight, but the point is that he isn't operating a business at all, seeing as there's no product nor sales. So what does he have? Maybe he doesn't need an LLC at all right now.
- mark212 8y agoThat is not true. I speak from personal experience of less than a year ago, with a gigantic international bank.