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.