What is the best state to set up a C corp for trading? Tax free income and corporate tax,...

[Robert Morse]

Where do you live in NY Bob?

Westchester.

 

[Sig]

Plus, it has to be decent for living. I am planning to leave NYC soon. Can't deal with the new taxes.

Just to clarify, you get the tax benefit from moving, not from setting up a C-corp, and you have to live in the state to get the tax free benefit, not just have a C-corp there. You'll generally get no benefit from setting up a C-corp and you will face double taxation so there's generally a loss there. You may be thinking you can set up a C-corp in a state you plan to move to eventually and dividend yourself back the profits then to avoid state tax. If so keep in mind that if you live in a different state than your company is incorporated in you'll have to register as a foreign Corp in the state you live in. The Corp will then have to pay most if not all of your home state's corporate income tax under a 3 factor test.

 

[invortex]

Thanks. I was thinking of relocating.

 

[Sig]

Thanks. I was thinking of relocating.

Well that solves that problem then!

 

[invortex]

I realized it was too complicated to just set up the C corp in a no corporate tax state. I realize that the C corp will be giving me dividends and salary and I would then have to pay local income tax on it!

 

[boomdog]

Check out Wyoming's (Unrestricted) Trust. You might be glad you did. /:')

 

[invortex]

Check out Wyoming's (Unrestricted) Trust. You might be glad you did. /:')

Thanks. I did. I can only take out 5% out each year.