What state to set up our LLC

Question

Doug E. · Answer

Ok... Most LLCs don't pay corporate taxes, regardless of where they are formed, unless they elect to be treated as a corporation for tax (rare that one would do that).

Jeff B. · Answer

I know NV has no corporate taxes (also applicable to LLCs), and major Blue Chip companies file in DE, but not clear myself.

Doug E. · Answer

What preferable tax treatment does a NV or DE LLC receive?  Any links to said information would be appreciated.  TYIA.

Jeff B. · Answer

When creating legal entities, the normal approach is:

• Create the FIRST in a State with preferable tax treatment, like NV or DE.  The establishes the 'parent'
• Then for each State in which you want to do business in with that entity, you Foreign File the parent name or a derivation when there's a conflict

If you only do business in one State, then just file there.

Doug E. · Answer

I don't know the pricing for a foreign qualification in Kansas, as that varies by state, but some states (e.g. CA) are rather pricey so lends itself to having LLCs in each state vs. having to qualify an LLC in multiple states.  Multiple LLCs require a bit more bookkeeping, but also provide segmented asset protection as @Bryan Otteson mentions, so there are many other points to consider.  Worth discussing with your lawyer and/or accountant once you have an idea of what you want to do.

Bryan O. · Answer

@Kayla Whiteley I would set up the LLC in Florida and then register it to operate in Kansas, just as @Kenneth Garrett said. Doing more than 1 LLC is up to you and your asset protection strategy. A key point to note is that whatever state your LLC may be sued from is whatever state laws will apply to your LLC.

Kenneth Garrett · Answer

The LLC must be in the state you own the property.  You can have a Florida LLC and then register it in Kansas.   I use separate LLC's in each state I own property to take advantage of the asset protection.

Hope this helps.