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Internet business starting a LLC

by rasalter, Window Shopper

  • Created: June 23, 2009, 5:30 pm
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7 comments

I am a resident of Virginia but want to create my LLC in Nevada because of their income tax laws.  I will not have a physical business location in VA- all transactions will take place online from anywhere in the worrld.  Do I still have to pay income tax to the state I reside?

 

Thanks in advance for your responses! I'm finding it difficult to find info on starting an LLC for online business.

Tags: Discuss Popular Topics, Starting & Registering a Business
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youHUGE | Window Shopper | 8/28/2009 - 12:45 am

Boy there are some well informed people on this board. Hats off to you all. I think I will come here more often. Larry, trade show display -- This post was edited to remove a commercial link. Read our discussion policies for more Community best practices. Message Edited by NicoleD on 01-22-2010 01:13 PM

siotw | Creator | 8/27/2009 - 8:15 pm

Excellent clarification John. State income taxes are unavoidable but business formation entities often times prey on people's ignorance about having a corporation or LLC domiciled in a state other than their home state. Here's an FAQ on http://smallbusiness.yahoo.com/r-article-a-2679-m-4-sc-20-limited_liabil... LLC laws from Yahoo that was helpful for me as well. -- This post was edited to remove a commercial link. Read our discussion policies for more Community best practices. Message Edited by NicoleD on 01-22-2010 01:15 PM
Professional Web Site: http://sellitontheweb.com/blog

phanio | Contributor | 7/18/2009 - 8:22 am

Can you not do the same thing closer to home like Tennessee or Delaware? Make sure you compare the entire cost of doing business in your state to other states - the total cost, not just if you will pay business income taxes.
Professional Web Site: http://www.businessmoneytoday.com/

jbeidle | Contributor | 7/17/2009 - 6:48 pm

Nevada has no income tax for individuals or corporations so you will not pay income tax to Nevada. Of course that could always change. NV does have yearly registration fees that are quite high.   Despite what many websites may try to sell you about domiciling your business in NV for asset protection, privacy, tax avoidance, etc., they are arguably all untrue. If you make money you will owe personal income taxes in the state you live in.    
Professional Web Site: http://TaxPanningStL.com

BuzGuy | Contributor | 6/24/2009 - 4:15 pm

Yes, you would pay tax in 'both' states; this is because you'll pay the actual LLC's tax in Neveda and your personal income tax in VA. I would avoid trying the cross state LLC setup and stick with your home state.
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NicoleD | Former Moderator | 8/28/2009 - 1:23 pm

Larry - there sure are! BuzGuy, Phanio, siotw, and jbeidle - Thank you very much for sharing all of your insight and research :)

hardwood | Creator | 7/31/2009 - 2:46 pm

So I live in SC. I can apply for LLC in Nevada. Do you have any links for that? SC taxes are high. thanks, http://www.hardwoodfloor.palmettohardwood.com -- This post was edited to remove a commercial link. Read our discussion policies for more Community best practices. Message Edited by NicoleD on 01-22-2010 01:13 PM
Professional Web Site: http://www.palmettohardwood.com