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DotCom Taxation for LLCs
bbqchickenrobot
subscriber Posts: 2
Hi All, just wondering how the taxation for an LLC would work. I am a California resident and my objective is to pay as little taxes as possible (legally) with a new dotcom business. It will only be virtual, so I am thinking about starting a Nevada LLC instead of a California LLC as Nevada does NOT have state taxes. From what I understand CA and NV LLCs both require you to pay federal income tax on whatever profits/losses acquired by the LLC on your personal federal income tax return (unless you choose to be taxed as a corporation at the higher corporate tax rate). So, I was thinking because I am virtual, I can start up the dotcom, form LLC in NV and will NOT have to file as doing business in any other state.
Although, my server(s) will be located in various places throughout the country, but that doesn`t have an affect on my taxation requirements right?
Although, my server(s) will be located in various places throughout the country, but that doesn`t have an affect on my taxation requirements right?
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Comments
In terms of business presence... I was planning on possibly renting an executive suite to establish a nevada address registered to the LLC and get a bank in nevada for my account... then I would be the only employee, but I guess, I can setup another LLC or DBA and pay for software development services to a "3rd party" instead of an employee. Since hosting in a certain state doesn`t establish presence in that state I thought I could maintain presence only in Nevada. Does having an employee in Cali establish presence? Bottom line is that I think there really isn`t much of a way around this.
I hate that california taxes what your LLC makes even if you don`t pay yourself the money (leaving it in the LLCs bank account but choosing to pay taxes on my personal income).... Thanks for all your help guys! If you have any computer questions I`ll be sure to get one of `em bbqchickenrobot2007-9-7 16:12:1