This is incorrect. He gets a credit on his Ohio return for taxes paid to other states.
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Forming Out of State LLC
- Thread starter RedSun
- Start date
This is incorrect. He gets a credit on his Ohio return for taxes paid to other states.
Quote from tiddlywinks:
While you are correct each state has it's own regulations, you are sorely mistaken on the amount of sales necessary to pay state tax. Franchise tax is not the same as state (or local) income tax. In fact, franchise tax is not even based on income at all!
While you are correct each state has it's own regulations, you are sorely mistaken thinking NV has no annual fees for a NV LLC. To PROPERLY form an LLC in NV the DIY fees total $400 MINIMUM...
$75 filing fee
$125 Initial Managers/Members list
$200 Business License.
Any additional fees to third parties such as registered
Trade On!
Trade On!
If you are not conducting business in Nevada, is a license still required?
Quote from ferrycorsten:
This is incorrect. He gets a credit on his Ohio return for taxes paid to other states.
Unless the credit is 100% and the taxes paid to the "other" state is equal to the amount of state/local/school district tax due in Ohio, taxes need to be paid to multiple states.
Quote from marketsurfer:
If you are not conducting business in Nevada, is a license still required?
Good point. The answer is no. Obviously that completely negates the NV tax advantages Somewhere a business license must be maintained. And if the entity is not setup in a state where business is conducted, then the entity would be required to register (and pay fees etc) as a foreign entity in that state(s) where business is conducted in order to receive a business license for that state.
School tax is real estate tax, not income tax.Quote from tiddlywinks:
Unless the credit is 100% and the taxes paid to the "other" state is equal to the amount of state/local/school district tax due in Ohio, taxes need to be paid to multiple states.
There is no double taxation of state income. The credit is 100%.
listening to all the advice, etc... I can offer you advice and it wont mean anything, just reach out to a professional...
http://www.greencompany.com/
he/she will discuss your situation, your trading and come up with a suitable strategy that will meet your objectives...
enough said..
http://www.greencompany.com/
he/she will discuss your situation, your trading and come up with a suitable strategy that will meet your objectives...
enough said..
Quote from ferrycorsten:
School tax is real estate tax, not income tax.
There is no double taxation of state income. The credit is 100%.
Firstly... tax is tax. It makes no difference how the tax is characterized or what it is called. It is a tax. Fortunately, we are free to the extent that we can geographically relocate to states that we determine are more favorable for our individual wants and needs.
As for state income, each state has it's own R&Rs. A quick and cursory search brought this up regarding Ohio... "If you work in Ohio and are a resident of Indiana, Kentucky, Michigan, Pennsylvania, or West Virginia you do not have to pay Ohio income taxes on your wages. You would submit exemption Form IT-4NR to your employer." Well whippee twang! What if you are a resident of one of the other 44 states and work in Ohio? No soup for you!?
I'm a CPA with a Master's in Taxation. You couldn't be more wrong.
And "tax is tax" is a blatantly erroneous statement. Property tax is very different from income tax, just like estate tax has nothing to do with payroll tax.
And "tax is tax" is a blatantly erroneous statement. Property tax is very different from income tax, just like estate tax has nothing to do with payroll tax.
I filed my first LLC in Delaware and regretted it. It's generally not worth the trouble unless you intend on going public or you expect to be sued. Google the advantages and disadvantages of filing in another state and I think, based on your type of business, you'll decide it's best to file in your home state.
No Registered Agent, no Foreign Corporation Filing, Simplified Tax, etc. The simplified taxes alone makes it more worthwhile to file at home. Also, consider an S-Corp. They are much cheaper to begin and maintain, at least in my home state.
No Registered Agent, no Foreign Corporation Filing, Simplified Tax, etc. The simplified taxes alone makes it more worthwhile to file at home. Also, consider an S-Corp. They are much cheaper to begin and maintain, at least in my home state.
Quote from ferrycorsten:
I'm a CPA with a Master's in Taxation. You couldn't be more wrong.
And "tax is tax" is a blatantly erroneous statement. Property tax is very different from income tax, just like estate tax has nothing to do with payroll tax.
So let me get this straight... You are a CPA, and I'm just guessing you live and/or work in Ohio or in one of OH reciprocal tax states. As a CPA with a Masters in Taxation, you NEED taxes in order to earn a living. The more taxes (regardless of name or characterization) , the more complex the tax code, the better. That's fine, but a tax is still a tax. It is also fine that some people opt to reside in places where taxes (regardless of name or characterization) are fewer and persons do not need to concern themselves with state tax code idiosyncrasies.
This thread was/is about "forming LLC out of state" I hope the op doesn't plan to place any OH real estate in the LLC.
Trade On!