Call Us Now: +1 (877) 330-2677 Live Chat: ONLINE NOW            
https://d25eic0jctudgb.cloudfront.net/images/site/general/answers-to-answers-8743d0241f5d8c2c996225efe2063f89
https://d25eic0jctudgb.cloudfront.net/images/site/headlines/articles.jpg-5fa541d76bf4be9016b1176147b3bc96

Forming LLC in Nevada

Asked by: Jay Bee - 30 January, 2013
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/default.png-f1597c1da25f30f8c1a941405e8391c8 We are an internet based sales company who uses drop shippers from a range of states to ship our products.

Our LLC will have 1 owner who lives in NJ.

Does it make any sense to register the business in a state like Nevada?

Thanks
Answered by: Robert Kowalski - 30 January, 2013
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/35.jpg-687fc92d5f6c5febcbdccb6895b08b8c Jay,

It really depends on whether the owner is actively involved in management of the business, and if not then where the management of company affairs is taking place.

There are many good reasons why states like DelawareNevada and Wyoming are so popular as incorporation destinations, however often times people pick one of these states for all the wrong reasons. First of all, when forming an LLC there is no tax advantage, since LLC is not taxed on company level, but on member level. Second, even if the company is registered in one of those states it doesn't mean it is not required to be registered in other states. When owners of the company are living in another state (like New Jersey) and take active role in running the business, in essense the business creates nexus in New Jersey and is required to foreign-qualify (register as "Foreign Entity") in New Jersey. When thinking about it, it might be best just to register in New Jersey to begin with and save on the double registration.

So the question always is what is the purpose of registering in an incorporation-friendly state, and then it can be examined to see whether such registration will in fact achieve the desired result or not. You can email me the reasons why you considered Nevada in the first place, and I will help you analyze it.

We Want To Connect With You!

Social Media is increasingly the preferred method for businesses to connect with their clients, peers and customers. We are dedicated to share information and useful tools to help you grow your business.

Like us on Facebook, follow us on Twitter, and let's begin the exchange to Help Grow America One Business at a Time - starting with yours!

https://d25eic0jctudgb.cloudfront.net/images/site/general/payment-methods-footer-052a63251a379d6e5ece1801f07470fc Official PayPal Seal SecurityMetrics for PCI Compliance, QSA, IDS, Penetration Testing, Forensics, and Vulnerability Assessment