I’m getting sick of being a CA business because too many things need to be physically mailed in. My customers are all located in the Bay Area in California, but I want to incorporate in a state with low tax liability plus the ability to manage EVERYTHING online, such as business licensing, etc. Anyone got any tips?
@aaron1096 why did you recommend a New Mexico LLC (New Mexico has corporate and personal income taxes)? You linked to a very expensive registered agent service; are you affiliated with them?
Washington State’s LLCs can be managed online (I manage two of them) and taxes are pretty low.
As to the paper problem, do you know about Lob? Makes it easy to send physical files using a website. It’s designed for programmatic use, but it’s also pretty easy to upload a single PDF and have it mailed for you.
Isn’t Delaware or Nevada the top two choices in the US?
WY is the cheapest and highly recommended (I just set up an LLC and contracted RA services for $150!! After this it’s $49/year with free mail forwarding!) but if you are living in CA you will need to register your LLC as a “foreign corporation” in California so beware!
Awesome, thanks for the recommendation for Lob. Looks like it can do practically everything - even send out checks! This is crucial for those stupid government agencies that still require you to send in forms and paper checks!
Right, no matter what I’m not going to escape the California LLC tax, and the associated snail-mail paperwork required…
You also will not legally escape California’s Franchise Tax Board.
If you’re home office is in California and/or your permanent residence - you’re going to have trouble escaping it - especially if most of your clients are in Cali.
Definitely talk to an accountant about this. I’ve seen the CA FTB do some pretty borderline-illegal things in attempt to collect money. They’re pretty intense.
I suggest doing Washington State, no business or personal income tax. You can set up everything online. Also you can establish residency by setting up a mailbox with TravelingMailbox. To cover myself, I also went to Seattle and got a driver’s license. Was very easy.