Loading...
Answers
MenuIs there a benefit to form a LLC in another state?
I live in PA. Should I consider forming aLLC else where? Is there any benefits?
Answers
Depends on the state. Some states are known to be more business friendly than others. Better protections, etc. You need to your research to see which states are better for the industry you're in.
Hello,
Some states have lower tax or no taxes. Nevada is a popular place for people to incorporate.
Keep in mind while I know a LOT about the law (having worked in journalism and as a coach/consultant for over 20 years) I am not a lawyer.
However, I can help walk you through some processes of forming your business — such as deciding your strategies in many areas (like marketing) and getting free publicity.
I would love to help you further, so I hope you'll book a short follow-up call soon.
Best wishes,
Stephanie
You can certainly form an LLC in a different state. The choice of jurisdiction will depend upon a few factors, such as the business laws within the state, privacy protections, tax implications and liability protections. It will also depend upon how many owners are in the LLC. If you are the sole owner of the LLC, the entity is classified as a single member LLC and is disregarded for federal income tax purposes. In some states, single member LLCs aren't afforded the same protections from creditors as multi member LLCs. Generally, creditors are limited to charging orders and are not permitted to take over an LLC interest or seize assets within the LLC. Some states, however, do not provide these protections for single member LLC's. Only certain states such as Delaware, Wyoming and a few others, have specifically adopted statutes that provide these protections. The other concern is privacy. Some states maintain a public database which lists the LLC name, address and the owners of the LLC. If you desire more anonymity, you should form an LLC in a jurisdiction that does not publish these details.
Taxes are certainly always another concern. Some states have mandatory tax filings for entities formed within the state, while other states do not require annual filings if you do not conduct a trade or business within state lines. If you form an LLC in a different state, but you live and operate your business within PA, you'll likely still be required to file a PA business tax return for the entity because you're headquarters are within PA.
We have seen a lot of other business-filing companies and services extol the virtues of incorporating in Nevada or Delaware, but the reality of the situation is a bit more nuanced. You have to contend with foreign qualification fees, regulations, licensing, and, to top it all off, the main state you do business in will probably still want to collect the same amount of taxes as they would if the business was formed in its borders. You have to contend with foreign qualification fees, regulations, licensing, and, to top it all off, the main state you do business in will probably still want to collect the same amount of taxes as they would if the business was formed in its borders. Yes, we know we just disparaged the tax argument, and most small businesses will just have to accept there is no escaping the taxman. However, in a few, select cases, you can save money on your tax bill by forming your business in a state other than the one you do business in. Some states have a high ‘nexus' point – the point where they begin charging foreign corporations for doing business in their borders. If you run a business that has a presence across state lines, then it can make sense to find a friendlier state to form your company in. When it comes to multi-state businesses, most states will only collect tax on income derived from within the state. If you need to be close to a harbour, for example, you do not want to form a corporation in Nevada, no matter how business-friendly the state is. So, make sure to take your infrastructural and operational needs into consideration when choosing a state of formation.
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath
Related Questions
-
What companies have successfully implemented both B2B and B2C products or services? Which should I start with for the non-profit sector?
I would suggest the first question to ask is "what problem do I solve?" And of those people I solve problems for "who do I create the most value for?" In the non-profit world you need to add "How does my business help the non-profit run better and/or help the group the non-profit focuses on?" For example, if you've created a platform that drives donations, your company "has created a platform that helps you reach fundraising goals faster." What you don't want to do is market and sell to B2B and B2C audiences simultaneously. They have different ways of buying - a B2B audience needs to have their benefits quantified (using your thing makes me x amount more) - and it's extremely hard for a startup to be able to do both well. Better to start with one, execute really well and move into the other. Feel free to give me a call and we can dig into who your most valuable audience is.AV
-
How can I become an idea person, as a professional title?
One word: Royalties This means you generate the idea and develop it enough to look interesting to a larger company who would be willing to pay you a royalty for your idea. This happens all the time. Rock stars, authors and scientists routinely license their creative ideas to other companies who pay them a royalty. Anyone can do it. Your business, therefore, would be a think tank. You (and your team, if you have one) would consider the world's problems, see what kinds of companies are trying to solve those problems, and then develop compelling solutions that they can license from you. You have to be able to sell your idea and develop a nice presentation, a little market research and an understanding of basic trademark and patent law. The nice thing about doing this is that if you develop enough cool ideas you will have royalties coming in from a lot of different sources, this creates a stable, passive revenue stream that requires little or no work to maintain. Start in your spare time and plan on the process taking 3-5 years. Set a goal to have a few products in the market that provide enough revenue (royalties) to cover your basic living expenses. Then you can quit your day job and dedicate more time and increase the momentum. A good idea business should have dozens, if not hundreds of license contracts generating royalties. It's possible to pull this off. And it is a fun job (I'm speaking from experience).MM
-
What environmental and personal characteristics allowed Larry Page/Sergey Brin to be so successful?
They met a need for lots of people. Their values lead to long term success, but their short term growth was due to meeting a need in the marketplace and doing really well.JM
-
Is changing my personal name (or use another name) good for business?
I lived in the US for 28 years before returning to Russia. My name is not easy for Americans to pronounce (anything outside of the Anglo-Saxon standard names seems to fit that category). Short version of Stanislov is Stas, so I went with that for them, but I never would change my name. Take pride in the name you were given and the culture you came from. Your parents gave you that name and you have it for a reason. Just because others don't pronounce it just right is no reason to throw away your culture. Oh and Misha is the short Russian version of Michael, if you americanized it, it would have to be Mike.SK
-
As an accounting graduate with no money and no connections, how do I start my own consulting firm? And how do I get clIents?
STOP. DO NOT DO THIS.... I would never want help from someone like you. Don't get me wrong -- you aren't evil (that I know about) but you don't seem have any value that I could pay for. What would you be "consulting" a CEO like me about? How do you expect to make my business better when you don't have a clue about your own business? THAT'S THE TRUTH... Fuck the truth. If you want to get clients then you hustle -- every waking moment. You try an angle and fail and then try a different angle. You can't outsmart your way to bigger results. 2 plus 2 does not equal 4 -- it equals you going bankrupt. If you want to be successful then you need to exert massive amounts of effort to get off the ground. So get your ass out there and start asking everyone you meet: "What is that one big accounting question that's been bothering you for some time now? If I can't help you i'll buy you a cup of coffee" Then just go be a badass...DW
the startups.com platform
Copyright © 2025 Startups.com. All rights reserved.