LLC in Wyoming Owning Property in Other States

Asked by: Luc Richard  — 14 April, 2012

I would like to register an LLC in Wyoming, but I plan on using property in other states for my datacenter infrastructure for my online services. Does this qualify as doing foreign business? And if so do I get double corporate taxed? I am also located in Canada, but all my business is done online and through the internet so I should be exempt from paying coprorate tax here even if a sale is made and delievered to Canada, right?

Answered by: admin  — 14 April, 2012

Dear Luc,

I presume you do not own the datacenter, but only use its services to run your servers, as an example. Whether this alone creates nexus for your business in the state where the datacenter is located would be a good question to ask a corporate attorney (preferably practicing law in that state), however in my opinion it’s quite unlikely.

As far as taxes go, LLC is not taxed as a separate entity, but instead passed its profits and losses to its owners. I know taxation for international members of the LLC is a bit different than that of US members, however as far as I know you are taxed in the US for profits received in the US, so if your client base is Canadian in nature you would certainly be subject to taxation in Canada.

In other words, on all issues of taxation its a good idea to consult a CPA knowledgeable in US-Canada taxation question.

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