Hi Nice Info,
I read above link and see this No state income tax for Delaware corporations that operate out of state
Now I m in California, if i register LLC in Delaware, that means I m wave of Delaware state tax but I still have to pay California state tax which 7-8% Is it Right?
Plus I read this You do not need a physical address within Delaware because we provide it for you.
That means we have to use Harvard Business Services provided physical addreess for whole life right? If yes tahn we will collect all info sended by state on this address for whole life.
And is there any annual/other fees to keep our LLC live from Delaware state.
Hope you answer my queery as I m new for LLC.
The tax issue is tricky, even for me as many years as I have been doing my own taxes.
And I would need to run this by a tax attorney for my benefit. If I earn income through the LLC or in the name of the LLC, no - that is not claimed for Delaware tax. But, do I claim it as NC taxable income? If the answer is no, I don't have to then man-o-man, I've been doing it wrong and overpaying.
So I am guilty of not getting answers for myself and never gave the tax issue much thought until now. The primary reason for my establishing an LLC was to protect myself and any assets in the event of legal action filed - whether it is the domain business, the antiquity trade I am involved with, the restoration side of things, or conflicts of interest or anything related to the above and then some. Taxes were never a primary concern. But now they are and I am stumped but will find out for myself. I am certain that every state will be different in how this is treated.
No, you do not have to have a physical address in Delaware. That is provided through your registered agent. Those fees can be high and vary from agency to agency. And the registered agent represents you and your INC or LLC. I would presume the same as being a client.
The service does provide for mail forwarding. I use a PO Box for all business matters including all information on the WHOIS. I firmly believe in separation of personal and business matters and keeping them separated by the physical and virtual sense. No where will there be a disclosure of my personal address on any of these matters. With a litigation happy society and the ramification even false claims can cause (dealing with one at this moment - so time consuming), I want no one to involve personal assets or family in any of these issues.
As for the annual fee, do check their site. I pay $200 per year. I just noticed that as of this year, it will be $250 minimum per LLC. It may be different per state. I have noticed that they do charge different filing rates based on the applicants states. Why this difference, I do not know.
Harvard Business Services does a fabulous job at notifying you well in advance of any taxes coming up and agent fees. They will be glad to file you taxes for you (for a fee, of course) or you can go to the Delaware State's site
http://corp.delaware.gov/paytaxes.shtml
Very quick and easy and no added fees.
For that matter, you can save on fees filing for INC or LLC yourself on their site. But this is very time consuming and quite confusing.
I will certainly take the time to find out (for myself - I am sure California will be different) about the state tax issue. The benefits could be great although more paper work and forms at tax time.
The last thing any of us ever want to do is be audited. I have once in nearly 30 years of doing my own taxes, it was not fun, a massive time consuming project, but after all said and done I owed a grand total of $0.23 (23 cents). I paid by check.
And I was received a check from Uncle Sam for 78 cents, never cashed it, and it must be driving them crazy.
