Nevada Sos Llc
LLC, C or S Corp in Nevada?
I have a parttime online business that sells promotional business where I drop ship all my products. I live in CA, but want to incorp in NV (assuming thats a good choice). I also have another full time job (w2) in CA.
1) Is it poss to avoid CA’s Franchis fee? If so, how? Which entity would be best?
2) What is the best way for me to pay myself with the least amount of taxes?
Incorporating in a tax free state like Nevada is not going to stop California from taxing you if you live there. If you are doing business in California they will demand you pay all fees, taxes and get required permits etc. If you want freedom from state taxes you have to move to the state that offers this.
Forming a LLC or Corporation will not reduce your taxes. In some cases depending on how you set it up it will increase your taxes. The LLC typically flows to your personal tax return. So it doesn’t matter if you funnel the money through the LLC and then to your tax return or if you just do it on your tax return in the first place without the LLC. The purpose of a corporation or LLC is to protect you against liability in case something goes wrong not to avoid taxes.
If you still want a LLC do it yourself. See the link below to find out how.
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