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Creating an LLC in Wyoming to manage an LLC in New Hampshire, any benefit?

Asked by: Jeremy - 21 March, 2012 I wish to start a business that will be involved with purchasing and selling expensive movable property, i.e. recreational vehicles.

What, if any, benefits may be had from creating two LLCs in this manner? Is it possible to purchase the vehicles using the New Hampshire LLC, therefore avoiding sales tax, but sell and subsequently report the income tax with the managing Wyoming LLC?
Answered by: Robert Kowalski - 22 March, 2012 Jeremy,

As far as sales tax is concerned it probably wouldn't matter what entity you are buying your vehicles (or other taxable items) with, but in what jurisdiction (i.e. state) the transaction takes place. So if you are buying them in New Hampshire you wouldn't even have to register you company there (unless the volume becomes significant) in order not to pay sales tax as there is none in that state. At the same time, if you are buying them in California you would have to comply with all the appropriate tax rules and laws pertaining to this kind of transaction.

As far as income tax is concerned, again, what matters in not where your LLC is registered but where it does business (to a lesser extent), and where your personal domicile is located.

While we are professional incorporators and can register anything you need with any of the US States and DC, we do not typically give any tax advise. That being said, I would suggest consulting your business ideas with an accountant and/or business attorney prior to deciding on the type of entity and the formation jurisdiction.


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