Sponsor Message:
Non Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
Starting A Wyoming-LLC While Living In NYC  
User currently offlineAA7295 From Australia, joined Aug 2007, 620 posts, RR: 0
Posted (1 year 3 months 5 days ago) and read 1183 times:

Hey Everyone!

I was wondering if I can pick your brain and get your input on my aspirations.

I want to create an LLC in Wyoming, which seems to be the best state for a sole-trader/small business to incorporate in as it provides reduce your tax liabilities. However I will be living in New York City while this LLC will operate. My business is in the internet consulting industry and I will have clients across the US and abroad. I am a one man business and work alone.

I fully understand that as a NYC resident I will have to both pay NYS and NYC taxes and register as a foreign corporation in New York. But do you think it's worth registering in Wyoming, given that it's cheaper to incorporate there considering that there is the potential that I will be relocating across America over the course of the LLC. (I'm in my twenties and don't envisage I could live in NYC for more than 4 years).

Also, given that I will be consulting with businesses across America, do you know if that is INTERSTATE or INTRASTATE business. I will not have a physical presence nor any employees outside my apartment and all consulting work will be done in NYC, it's just the clients will be located outside of New York.

I've heard that in order to have my personal assets protected from business-related liabilities, I have to be registered in the state where I am doing business. Apparently, If I'm registered out of state, there’s no protection. My personal assets are still exposed. Can anyone confirm if this is true. Sounds a bit ridiculous to me.


Before you respond, please note, I do intend on seeking legal advice down the track, but I do want some frame of reference before I consult a CPA or Tax Attorney.

Thanks y'all!!

2 replies: All unread, jump to last
 
User currently offlinecptkrell From United States of America, joined Sep 2001, 3220 posts, RR: 12
Reply 1, posted (1 year 3 months 4 days 22 hours ago) and read 1162 times:

I haven't had an operating business in many years (it was in Michigan) and don't really remember pluses and minuses as per your inquirey. However, why not go to www.legalzoom.com (I think that's Shapro's company) and do a search. They have a menu on the opening page that addresses LLCs and you may be able to glean some free info before you get serious. Just a thought...regards...ajck


all best; jack
User currently offlinesccutler From United States of America, joined Jan 2000, 5505 posts, RR: 28
Reply 2, posted (1 year 3 months 3 days 20 hours ago) and read 1047 times:

First and foremost, you must know that incorporating (and by "incorporating," I mean creation of any corporate-type entity, including corporation, LLC, limited partnership) in a state other than the state in which you do your principal business does nothing to protect you from the taxes for your home state, or any other state in which you actively do business.
If New York is your home, your corporate entity will be required to provide the full reporting, and payment of taxes, to New York State and whatever other taxing entities (such as New York City) may apply; these will be in addition to mandatory tax reporting in the home state of the corporate entity. The cost and complication will quickly add up.

Many people labor under the mistaken impression that they can avoid taxation in their home state, by incorporating in another state (most frequently, Delaware or Nevada), and this is simply bunk. I note with encouragement that, from your original post, it does not appear you are trying to evade taxes, but rather, to find the state in which the cost and burden of incorporating is the least. I believe you'll find that, after consulting with tax and legal professionals (a wise choice), after factoring in the cost of "domesticating" your entity in your home state, your savings may be illusory.

I will strongly urge that you get counsel from qualified professionals, both for taking any action. I strongly discourage the use of on-line "self-help" incorporating services; I have had a number of clients for whom substantial (and costly) corrective measures were required, because they "saved money" by incorporating with some Internet -- based incorporating service company. Even those services which purport to provide assistance from counsel, are simply referring you to lawyers who have paid to be in their referral pool. Choose your professionals by references from satisfied clients, not by random referrals from an Internet business.

As always, the foregoing does not constitute legal advice, but rather, is random stuff you read on the Internet. A little money spent today, consulting with knowledgeable professionals, will help you to build a solid foundation upon which to build your successful business, and I wish you the greatest success in so doing.



...three miles from BRONS, clear for the ILS one five approach...
Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
Anyone Know Anything About Living In Victoria, BC? posted Fri Nov 9 2012 18:21:24 by HOMsAR
Living In Saskatchewan, Canada... posted Tue Oct 16 2012 14:04:58 by TS-IOR
Ahmadinejad Arrives In NYC... posted Sun Sep 23 2012 11:24:37 by KC135TopBoom
Shooting At Empire State Building In NYC posted Fri Aug 24 2012 06:47:24 by Aloha717200
Living In Crawley, UK. Advice? posted Wed Aug 15 2012 03:16:46 by A320ajm
Tornado In NYC (Sept 16) posted Thu Sep 16 2010 21:00:46 by KingFriday013
Anyone Living In/near Essex (UK)? posted Sat Jul 31 2010 13:03:11 by DIJKKIJK
Times Square In NYC Without Traffic? posted Sat Jun 26 2010 09:06:03 by Mortyman
RIP The V Subway Line In NYC posted Sat Jun 26 2010 08:00:04 by kingfriday013
Living In Miami Vs. Chicago posted Fri May 21 2010 00:02:45 by iairallie