Question about Forming an LLC

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myleow
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Question about Forming an LLC

Post by myleow »

Hi,

Wonder if anyone could help me out here. I am in California and wanted to register for a Limited Liability Company providing Subscription Service over the Internet.

I am currently debating between Delaware, Nevada or California.

Anyone have any idea which is better? Least taxation even on flow through.

Give any comment you have, and if you know what is a good place to register for a LLC online, please list it here.

Regards
Mian
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m3mn0n
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Post by m3mn0n »

Planning on making a sole-proprietorship or forming a partnership?
myleow
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Post by myleow »

Planning to making a Limited Liability Campany. It has the protection of corporation but still have sole-proprietor or partnership benefits.
rehfeld
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Post by rehfeld »

sorry, dont know which is best for tax purposes, but i would imagine theres much more to consider than just your business model structure. but your probably researching that, and this is just one aspect :)

you prob know this, but you pay a mentionable amount more in taxes being a llc over say, a partnership or sole proprietor. but having limited liability, somewhat like that of being incorporated can be very very nice, or even neccesary depending on your business.

isnt nevada just generally low tax? ive always thought so, they get a ton of tax money from the casinos....

but id have to say california, for the simple fact that the terminator is the governor lol

sorry for the worthless post.
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m3mn0n
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Post by m3mn0n »

myleow wrote:Planning to making a Limited Liability Campany. It has the protection of corporation but still have sole-proprietor or partnership benefits.
Sorry got my business lingo mixed up there. :oops:

I meant to ask if you'd be the only owner of the LLC, or if you'd be dividing up ownership of the company between others. I ask this because of this article I was reading a few weeks ago:
http://www.nvinc.com/llcqa.htm wrote:How Many Owners (Members) Are Needed To Form An LLC?

Some states authorize one-member LLCs. The IRS in 1997 implemented "check-the-box" regulations, which allow single-member LLCs to be treated as sole proprietorships for taxation purposes. Such entities will thus be subject to pass-through taxation, as would a sole proprietorship. [Treas Reg § 301.7701-1(a)(4)]

It is also possible to have two members, even though they are related. Trusts or corporation can be a member as well as individuals. Thus, it is possible to have an LLC between an individual and a corporation in which that individual owns, stock, or between an individual and a trust that benefits the individual. The "check-the-box" regulations allow substantial leeway in choosing the method by which the LLC will be taxed. [Treas Reg § 301.7701-3]
myleow
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Post by myleow »

Was going to do a Partnership with 2 people.

But i am putting that off until later, i will decide once the service is in Beta and success can be gauge.
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