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Cheaper to register in Delaware. Only $300 per year in LLC tax vs $800.
by flowerlad 6y ago
Cheaper to register in Delaware. Only $300 per year in LLC tax vs $800.
- stillmotion 6y agoYou still have to pay a minimum of $800 a year to the franchise tax board for operating a non-Californian business.
- pianoben 6y agoWord. California always gets its cut. If you're in California, or have customers there, going to other states only increases your potential obligations.
- feross 6y agoExactly. Which is why I just recommend forming a California LLC directly if you live in California (like I do).
- CalChris 6y agoYeah. I understand the advantages of a Delaware C corporation if you need a C corporation. But I don't see the advantages of a Delaware LLC if you will be operating in California.
- CameronNemo 6y agoIf you own the LLC but don't take a salary, do you still have to pay the fee?
- danielrpa 6y agoYes.
- ISL 6y agoNYS was the same way. It was irrelevant whether the company made money or not.
- LordAtlas 6y agoAs a non-US citizen, California taxes and fees seem ridiculous.
- manigandham 6y agoThey are. There's little-to-no benefit derived from these arbitrary fees, especially amongst all the other high taxes in the state.
- koolba 6y agoIf you live in CA and you’re going to cheat the taxman by not registering locally as a foreign corporation, then you might as well register as an Ohio LLC. $99 initial registration and zero annual fee to maintain it.
- smabie 6y agoDelaware courts are very business friendly, so it usually makes sense to register there, even if it's more expensive than other states.
- anon9001 6y agoSure, Ohio is nice because it has no fees and no reporting requirements for $99. But why stop there when you can go to Arizona and get the same deal for $50. But seriously, if you want to cheat California, just leave and move to a more business-friendly state and do your business legally. It's 100% not worth it to operate illegally in California, especially for the registration of an entity that's intended to protect you legally. Oh, also fun, don't forget to explicitly close out your CA business when you finally give up and move out. If you don't, they'll hunt you down for your $800/yr several years later with penalties and interest.
- mellavora 6y agoecho that. Failing to register as a foreign corp operating in CA is going to be seen as tax fraud by the authorities. They don't like that. CA is an expensive place in many ways. Basing your business operations there is only one of them.
- mproud 6y agoIn Minnesota, you pay a one time fee of $135, and renew yearly for free.
- protomyth 6y agoYep, and the renewal takes about 5 minutes online. North Dakota charges $100 then $25 for each annual report. Odd, ND is more expensive.
- dfjacobs 6y agoColorado is $50 to create a LLC, then $10 a year to file your annual report. If you miss the annual report filing date, the fee is $50 to get back in good standing.