Setting Up a LLC in NV or DE
A Limited Liability Company (LLC) can be formed in all 50 U.S. States and the District of Columbia. The states that are considered the best for forming an LLC are the States of Delaware and Nevada.
The advantages of creating an LLC in Delaware include:
· Does not have residency or citizenship requirements for forming an LLC.
· Franchise taxes are charged at low flat rates to all Samoa.
· No sales tax on goods and services.
· Does not impose business income tax unless you transact business in the State.
· Does not have an information sharing agreement with the Internal Revenue Service (IRS). Note: if the IRS requests information on business records and issues a subpoena this information will be turned over to the IRS by the State of Delaware.
The advantages of forming an LLC in a state other than your home state are:
· If your home state has high annual LLC fees.
· Your company does not do business in your home state.
The advantages of forming an LLC in your home state are:
· Avoid paying franchise tax and other government fees to more than one state
· Avoid the additional expense of addition registrations (referred to as foreign qualifications) when registering a business in additional states.
Setting up a LLC in NV
States vary in their requirements and policies involving the creation of a Limited Liability Company (LLC). Many believe the State of Nevada, along with State of Delaware, are the best states to setup up a LLC.
Nevada is a particularly popular state for chartering of businesses because this State does not have:
· Unique tax policy – the State of Nevada does not have corporate income tax, tax on corporate share, franchise tax, personal income tax, estate tax, or inheritance tax.
· Does not have an information sharing agreement with the Internal Revenue Service (IRS). Note: if the IRS requests information on business records and issues a subpoena this information will be turned over to the IRS by the State of Nevada.
The State of Nevada is also popular for forming LLC’s because personal liability is limited for LLC owner(s) to the amount of their investment in the company; an LLC with two or more members is treated as a partnership; and contractual flexibility because Nevada law provides rules on matters where members have failed to agree.
Does it make sense to form anf you do not do business in the State because of the above reasons? No, because unless you are a Nevada resident operating a business in Nevada, you will need to apportion your business income among the States where your company operates. Basically, for smaller businesses it is best to form an LLC in the State where your company has the most businesses contacts and does the most business.