question on LLCs in CA
Hi There,
Suppose I live in California, and I want an LLC in Nevada or Colorado. Is there a way to set it up so that I don't have to pay the idiotic $800 California fee?
Thank you!
Mark
Re: question on LLCs in CA
Well, you have a no answer and a sort-of yes answer, so I'll complete the cycle with a maybe answer.
Whether or not you have to pay a California franchise tax depends not on where you live or what states seem to have allure due to low fees, supposed privacy, etc. Whether you have to pay a California franchise tax depends upon whether you are doing business in California.
You are probably not doing business in California so as to have to register and pay the tax if you have only occasional and limited dealings here, such as buying or selling a property in a one-time transaction or taking an occasional order. You probably are doing business in California, however, if you have an address, employee, inventory, bank account or significant business contacts here.
I think one of the purposes of the franchise tax is to separate business founders with real ideas, financing and prospects from wannabe business owners who haven't stepped up to the realities of what it takes to start and run a corporation. I don't believe in wasting $800 a year, but on the other hand if that is a significant factor in a business founder's budget, maybe the business isn't ready for the LLC or corporate world just yet.
Re: question on LLCs in CA
Well, you have a no answer and a sort-of yes answer, so I'll complete the cycle with a maybe answer.
Whether or not you have to pay a California franchise tax depends not on where you live or what states seem to have allure due to low fees, supposed privacy, etc. Whether you have to pay a California franchise tax depends upon whether you are doing business in California.
You are probably not doing business in California so as to have to register and pay the tax if you have only occasional and limited dealings here, such as buying or selling a property in a one-time transaction or taking an occasional order. You probably are doing business in California, however, if you have an address, employee, inventory, bank account or significant business contacts here.
I think one of the purposes of the franchise tax is to separate business founders with real ideas, financing and prospects from wannabe business owners who haven't stepped up to the realities of what it takes to start and run a corporation. I don't believe in wasting $800 a year, but on the other hand if that is a significant factor in a business founder's budget, maybe the business isn't ready for the LLC or corporate world just yet.
Re: question on LLCs in CA
Well, you have a no answer and a sort-of yes answer, so I'll complete the cycle with a maybe answer.
Whether or not you have to pay a California franchise tax depends not on where you live or what states seem to have allure due to low fees, supposed privacy, etc. Whether you have to pay a California franchise tax depends upon whether you are doing business in California.
You are probably not doing business in California so as to have to register and pay the tax if you have only occasional and limited dealings here, such as buying or selling a property in a one-time transaction or taking an occasional order. You probably are doing business in California, however, if you have an address, employee, inventory, bank account or significant business contacts here.
I think one of the purposes of the franchise tax is to separate business founders with real ideas, financing and prospects from wannabe business owners who haven't stepped up to the realities of what it takes to start and run a corporation. I don't believe in wasting $800 a year, but on the other hand if that is a significant factor in a business founder's budget, maybe the business isn't ready for the LLC or corporate world just yet.
Re: question on LLCs in CA
Well, you have a no answer and a sort-of yes answer, so I'll complete the cycle with a maybe answer.
Whether or not you have to pay a California franchise tax depends not on where you live or what states seem to have allure due to low fees, supposed privacy, etc. Whether you have to pay a California franchise tax depends upon whether you are doing business in California.
You are probably not doing business in California so as to have to register and pay the tax if you have only occasional and limited dealings here, such as buying or selling a property in a one-time transaction or taking an occasional order. You probably are doing business in California, however, if you have an address, employee, inventory, bank account or significant business contacts here.
I think one of the purposes of the franchise tax is to separate business founders with real ideas, financing and prospects from wannabe business owners who haven't stepped up to the realities of what it takes to start and run a corporation. I don't believe in wasting $800 a year, but on the other hand if that is a significant factor in a business founder's budget, maybe the business isn't ready for the LLC or corporate world just yet.
