living in CA but registering company outside CA
Asked by: Manish - 19 July, 2012
Me and my friends want to start web development business. we are based in California. but want to know if we can register our company in Delaware/WY/Nevada? How should we go about it? Any issues if we are physically based in CA? ??ur bank accounts are in CA etc.
Me and my friends want to start web development business. we are based in California. but want to know if we can register our company in Delaware/WY/Nevada? How should we go about it? Any issues if we are physically based in CA? ??ur bank accounts are in CA etc.
Answered by: Ray Albert - 20 July, 2012
Manish,
With a web-based business, there can be some gray area when deciding what state to register in.
For example, when you use a virtual office as the business address, you may technically register your business in any state, such as Delaware or Wyoming. If you have a nexus in California state, such as an office, employees or property owned/rented by the business, then you would need to be registered in California state.
Keep in mind that while registering in a different state would spare you California's annual $800 franchise tax, if you plan on writing off your business expenses in California, you may wind up creating a nexus in the state to where you would need to register there anyway as a foreign entity.
While we can help register your business in any state, it's always a good idea to discuss your business plans with an accountant.
Manish,With a web-based business, there can be some gray area when deciding what state to register in.
For example, when you use a virtual office as the business address, you may technically register your business in any state, such as Delaware or Wyoming. If you have a nexus in California state, such as an office, employees or property owned/rented by the business, then you would need to be registered in California state.
Keep in mind that while registering in a different state would spare you California's annual $800 franchise tax, if you plan on writing off your business expenses in California, you may wind up creating a nexus in the state to where you would need to register there anyway as a foreign entity.
While we can help register your business in any state, it's always a good idea to discuss your business plans with an accountant.
