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LLC in Nevada?

calvincalvin subscriber Posts: 14 Bronze Level Member
edited February 2009 in Business Planning
it`s been stated many times that there are many advantages for incorporating your biz in Nevada.  has anyone from a different state done so?  i know the advantages... but are there any disadvantages?
here are a couple of other questions in regards to incorporating in NV...
1.   if you incorporate in NV, does your physical address have to be in NV?  can i set up my biz address with a CA PO box and still register my biz in NV?  where will my mail be sent?
2.  since i am thinking about incorporating out of state, i will need a registered agent.  can this agent be in any way a liablity (financailly, legally, etc.) to my company?  what happens if this 3rd party agent goes out of business?
3.  has any one had any experience setting up their biz online?  if so, what site do you recommend?  i`ve checked out legalzoom, bizfilings.com, and a couple of others.  does anyone have any recommendations?
this is a really exciting step in my life and i`m glad all of you guys are here to help!  any words of advice would be greatly appreciated!
thanks again


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    NuevolutionNuevolution subscriber Posts: 30 Bronze Level Member
    Calvin, Calvin, Calvin...Good question. It`s about time.. someone addresses this issue. I had to learn the hard way. Disregard whatever you hear on the radios and commercials about incorporating in NV. First of all what type of business are you planning of incorporating in NV?Here are some tips that may help you.
    I know you`ve heard that Nevada has no state taxes, privacy for the board of directors, and stuff like that... All of that is true...
    But here is where Incorporating in Nevada might hurt your business if you are doing business in CA.The minute you open an office in CA, you have to register as a foreign corporation in CA.  There is an $800.00 yearly fee to be a Cali Corp. Plus there is a one time fee of $149.00 for the secretary of state to process your paper work. In Nevada I believe is like $75.00 one time fee, plus the $250.00 a year to keep your corporate status. After you add all this up it`s costing you $1050.00a year to run your business thats excluding taxes.Another thing is, to be a Nevada Corporation you have to have a physical address, bank account, phone number, and a registered agent. I`ve seen a trent growing online called -Virtual Offices/ Registrants. These companies for a fee will act as your registered agent. They will open a bank account for you in Nevada, give you a virtual office and phone with a receptionist, "so if someone calls they will answer for you and forward the messages to you". Now these companies are up in the 1500 a year range. Another thing you have to travel constantly to make sure everything is legit. The company I used is called "The company Corporation" They will act as your registered agent for 1 year if you sign up with them.But my advise to you.. I know California is the worse state to Incorporate but it will cost you less in the long run. If you are anxious to Incorporate in NV. It would be cheaper to move there.
    It is pricey-if you go this route.
    p.s. Did you know that California`s Governor Incorporated his name or business in Nevada?
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    calvincalvin subscriber Posts: 14 Bronze Level Member
    haha.. thanks edgar.  i knew i could count on you to reply
    what if i my biz is just a website and doesn`t have a physical location?  most internet incorporation sites offer registered agents for $100-200/year.
    if i don`t forsee the need for a physical location in the near future, would it be beneficial for me to incorporate in NV?  if i incorporate in NV now, how difficult would it be for me to switch to CA if i do decide to get a physical address?
    does a PO Box constitute as a physical address for the biz?
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    NuevolutionNuevolution subscriber Posts: 30 Bronze Level Member
    No.. they don`t accept PO Boxes.. because let`s say they have to serve you with a lawsuit ( I hope not) then they need to be able to give it to you in your hands.. and your registered agent acts as the agent on your belhalf.As far as dificulty in Moving the Corp over, well if you are a foreign corp, all you have to do is disolve the one on NV and amend your Articles of Inc. I believe. My lawyer just told me that if it came down to transfering it over to CA, it`s better to disolve in NV and start out Fresh in CA..
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    startuphelperstartuphelper subscriber Posts: 2
    Let`s all take a step back here and go back to the beginning.
    Why do you need to incorporate for a web biz?
    There is a common misconception that incorporating just about any type of business is the thing to do to protect your assets. This is a falacy.
    Most new businesses will be required to sign personal gaurantees at every step. This will come up more frequently with brick and mortar (landlords, vendors, etc), but even for a web biz, if for example, you apply for credit card merchant status, you will be required to sign a pg. That personal gaurantee will effectively render the "protection" of being incorporating useless. The pg essentially overrides the so-called protection. Talk to an attorney first. Initial consultations are often free.
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    enagsenags subscriber Posts: 0
    i have an LLC in nevada with agent, address, telephone, bank acct....etc in Nevada.
    as a ca. resident, if i use my LLC soely for out of state rental properties (not Ca.), do i have to still pay Ca taxes?
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    robertjrobertj subscriber Posts: 0 Member

    i have an LLC in nevada with agent, address, telephone, bank acct....etc in Nevada.as a ca. resident, if i use my LLC solely for out of state rental properties (not Ca.), do i have to still pay Ca taxes?  thxeric
     Absolutely! Since you live in California - you pay taxes in California on your income.Since an LLC is a pass through - all of the income from the LLC will be passed to you. FYI, the State of Ca will also expect you to pay the $800 LLC minimum fee as well.
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