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Sid70 · 11-06-2013, 08:15 AM

I'm about to form an LLC in Delaware. I was told about $250 franchise fee, $167 Registrered Agent fee, $377 Initial formation fee that should give me the kit and all the papers required including EIN.

Questions are:

1. I need to pay franchise tax and registered agent, registered agent is not a problem but $250 yearly tax should be paid off my company account most likely. Do I need to obtain any business license at all if I only send money to my Delaware LLC to pay that tax?

2. Are there any other HIDDEN Government fees ?

THanks!

bean-aid · 11-06-2013, 08:24 AM

Delaware must suck to form an LLC. Never heard of a $250 yearly fee to open up a business.

Sid70 · 11-06-2013, 08:26 AM

Quote:

Originally Posted by beaner

Delaware must suck to form an LLC. Never heard of a $250 yearly fee to open up a business.

its a yearly Franchise Tax.

http://www.bizfilings.com/delaware/o...uirements.aspx

woj · 11-06-2013, 08:49 AM

you will likely need to file some federal tax forms as well and possibly some with Delaware as well... so put aside few bucks for an accountant to prepare those for you... what forms, etc, depends on what you are trying to accomplish with that Deleware LLC?

iSpyCams · 11-06-2013, 08:50 AM

I used incnow.com it was a lot cheaper. Just got my bill today for the RA fee, its only 90 annually. I didnt pay that much for the "information package" either, though I did pay a little extra to put a rush on it, iirc.

As to the 250 annual franchise fee, this is dirt cheap if you realize it is in lieu of any state corporate income tax. (unless you do business in Delaware)

Sid70 · 11-06-2013, 08:54 AM

Quote:

Originally Posted by pompousjohn

I used incnow.com it was a lot cheaper. Just got my bill today for the RA fee, its only 90 annually. I didnt pay that much for the "information package" either, though I did pay a little extra to put a rush on it, iirc.

As to the 250 annual franchise fee, this is dirt cheap if you realize it is in lieu of any state corporate income tax. (unless you do business in Delaware)

I dont do any biz in Delaware.

Sid70 · 11-06-2013, 08:55 AM

Quote:

Originally Posted by woj

you will likely need to file some federal tax forms as well and possibly some with Delaware as well... so put aside few bucks for an accountant to prepare those for you... what forms, etc, depends on what you are trying to accomplish with that Deleware LLC?

Only incoming $$ to cover FT ... no activity.

woj · 11-06-2013, 08:58 AM

Quote:

Originally Posted by Sid70

Only incoming $$ to cover FT ... no activity.

$250 will have to come from somewhere = "income"
so my guess some forms will have to be filed...

what scam are you trying to run?

seems unusual that the only "activity" will be wiring $250 to it, so you can pay franchise fee....

Sly · 11-06-2013, 09:04 AM

As an American, I would not do this without consulting an accountant. As a non-American, I would not even think about doing this without consulting an accountant.

Best of luck.

Sid70 · 11-06-2013, 09:04 AM

Quote:

Originally Posted by woj

$250 will have to come from somewhere = "income"
so my guess some forms will have to be filed...

what scam are you trying to run?

seems unusual that the only "activity" will be wiring $250 to it, so you can pay franchise fee....

Fantasies, bro, how about you get real?
I think a zero income also requires filing....

iSpyCams · 11-06-2013, 09:18 AM

Incorporating an LLC in Delaware is a standard first step for a new marketing venture. Low taxes, strong corporate laws and good asset protection. A huge number of US corporations are incorporated in Delaware for this reason. There is nothing illegal or even shady about it.

Usually my accountants have advised me to use a personal check from a personal account to open a new venture, not a corporate check from an existing business. I am not a lawyer or an accountant and I don't know what your guys would advise you in this case.

Sid70 · 11-06-2013, 09:19 AM

Quote:

Originally Posted by pompousjohn

Incorporating an LLC in Delaware is a standard first step for a new marketing venture. Low taxes, strong corporate laws and good asset protection. A huge number of US corporations are incorporated in Delaware for this reason. There is nothing illegal or even shady about it.

Usually my accountants have advised me to use a personal check from a personal account to open a new venture, not a corporate check from an existing business. I am not a lawyer or an accountant and I don't know what your guys would advise you in this case.

If i get payments from the clients based in Cali, NY, LA will i need to re-incorporate in several states?

vdbucks · 11-06-2013, 09:23 AM

As an LLC, opened in Delaware, the business itself does not pay taxes. You have to file but as the sole owner, or even in a partnership, there are no profits because any money left over at the end of the year goes to the owner(s) and the business itself files as breaking even at zero.

The business also pays no state taxes -- unless you do business in Delaware physically, but I'm not sure how that side works -- either.

The owner(s) however, gets "double taxed". Meaning that you pay both personal taxes as well as self employment tax on the same income from the business.

Sid70 · 11-06-2013, 09:47 AM

Quote:

Originally Posted by vdbucks

As an LLC, opened in Delaware, the business itself does not pay taxes. You have to file but as the sole owner, or even in a partnership, there are no profits because any money left over at the end of the year goes to the owner(s) and the business itself files as breaking even at zero.

The business also pays no state taxes -- unless you do business in Delaware physically, but I'm not sure how that side works -- either.

The owner(s) however, gets "double taxed". Meaning that you pay both personal taxes as well as self employment tax on the same income from the business.

Im not a US resident, will they ask me to pay PIT in the company if there are profits?
Not doing anything in Delaware physically, so FT only I guess.

Sid70 · 11-06-2013, 09:53 AM

Quote:

Originally Posted by Sly

As an American, I would not do this without consulting an accountant. As a non-American, I would not even think about doing this without consulting an accountant.

Best of luck.

US based accountant of course, any refs?

vdbucks · 11-06-2013, 10:04 AM

Quote:

Originally Posted by Sid70

Im not a US resident, will they ask me to pay PIT in the company if there are profits?
Not doing anything in Delaware physically, so FT only I guess.

Are you an American citizen?

You can claim exemption on PERSONAL tax, so long as you spent 360 days (double check that number) outside of the US.

You still have to pay SELF EMPLOYMENT tax, regardless.

Oh, and the gov doesn't ask you to pay taxes, it demands that you pay them, and if you refuse, they come after your bank accounts.

prezzz · 11-06-2013, 10:04 AM

Quote:

Originally Posted by Sid70

Im not a US resident, will they ask me to pay PIT in the company if there are profits?
Not doing anything in Delaware physically, so FT only I guess.

You should get in touch with a good accountant or tax lawyer in your current location. As a non-US resident you may be obliged to pay personal income tax locally for the amount you transfer out from your Delaware-based business.

Sid70 · 11-06-2013, 10:09 AM

Quote:

Originally Posted by prezzz

You should get in touch with a good accountant or tax lawyer in your current location. As a non-US resident you may be obliged to pay personal income tax locally for the amount you transfer out from your Delaware-based business.

I have read about that, looks like being a non resident makes me pay PIT at the income source... at the Delaware co.

96ukssob · 11-06-2013, 10:58 AM

first, why are you trying to file in Delaware? that old tax loop hole has long closed up and the only advantage DE offers over some other states is liability protection if you are in a partnership.

if you're looking to fly under the radar, I'd suggest another state that isn't a dead give-a-way of something shady about to happen.

I'm not sure on the laws, but pretty sure you need to have a physical address for form an LLC, or any entity for that matter. In PA you do, and same with CA.

Besides paying tax for no reason, why are you doing this?

Sid70 · 11-06-2013, 11:11 AM

Quote:

Originally Posted by bossku69

first, why are you trying to file in Delaware? that old tax loop hole has long closed up and the only advantage DE offers over some other states is liability protection if you are in a partnership.

if you're looking to fly under the radar, I'd suggest another state that isn't a dead give-a-way of something shady about to happen.

I'm not sure on the laws, but pretty sure you need to have a physical address for form an LLC, or any entity for that matter. In PA you do, and same with CA.

Besides paying tax for no reason, why are you doing this?

Its a fixed yearly fee LLC, barely made to operate but close a deal to buy another company in other country, a new owner... I'm after the cheapest and easiest solution, Belize and other stuff looks more expensive to me... unless i dont know something...

May be its better to get a Belize offshore do the same?

Grapesoda · 11-06-2013, 01:48 PM

Quote:

Originally Posted by Sid70

its a yearly Franchise Tax.

http://www.bizfilings.com/delaware/o...uirements.aspx

$800 in California I think...

Markul · 12-19-2013, 09:28 AM

Quote:

Originally Posted by Sid70

Its a fixed yearly fee LLC, barely made to operate but close a deal to buy another company in other country, a new owner... I'm after the cheapest and easiest solution, Belize and other stuff looks more expensive to me... unless i dont know something...

May be its better to get a Belize offshore do the same?

What did you end up picking?

postalsex · 12-19-2013, 09:36 AM

Quote:

Originally Posted by Sid70

Its a fixed yearly fee LLC, barely made to operate but close a deal to buy another company in other country, a new owner... I'm after the cheapest and easiest solution, Belize and other stuff looks more expensive to me... unless i dont know something...

May be its better to get a Belize offshore do the same?

You should not get the cheapest solution but the one that will serve your needs best. for a few hundred dollars difference you will be stuck with that structure for years to come and it is worth invested to get the right one not the cheapest one. Good Luck!

Sid70 · 12-19-2013, 09:54 AM

Quote:

Originally Posted by Markul

What did you end up picking?

Delaware is ok.

baddog · 12-19-2013, 12:00 PM

Quote:

Originally Posted by Sid70

If i get payments from the clients based in Cali, NY, LA will i need to re-incorporate in several states?

No 4,6,8

Sid70 · 12-19-2013, 12:36 PM

Quote:

Originally Posted by baddog

No 4,6,8

I'm puzzled enough.

ottopottomouse · 12-19-2013, 02:18 PM

Quote:

Originally Posted by Sid70

I'm puzzled enough.

The message you have entered is too short. Please lengthen your message to at least 8 characters.

JustDaveXxx · 12-19-2013, 02:28 PM

What is it that you do?

Where are your checks coming from?

Where do you live?

I have a Wyoming Corp set up. I have a DBA in California.

I also have a "Doing business as a foreign company set up in California. I also pay State taxes in California.

I also have it set up where someone else is the President with a physical address in Wyoming with a phone number and mail forwarding system.

Why? Not that i want to avoid paying taxes. Not trying to skirt the federal government and their cut of what I make. I carry insurance and workers comp insurance. I'm just an employee of my company and I don't look like the owner.(I do own all of the shares of the company) My big thing is if someone dies, catches HIV or anything unforeseen happens and it goes beyond my insurance, they won't be able to peirce my corporate vale and take everything I own personally.

Worst case situation, I can BK the company and walk away.

Corporations have so many uses depending on how you structure them. Knowing how to structure them and knowing what advantages they have for your personal and business situation is what is key.

I do have a legal background and I know how to do these things, but even I consult my attorney buddies that have "LLMs" (its like a masters degree for attorneys who are CPAs) in Tax law and I have a CPA so when I make a move, its the right move.

Hope that helps a bit. But your question is not directed to an attorney, but to a Tax specialist attorney. And those guys have CPA degrees, JD degrees and LLMs in tax law.

And from what I know, we don't have one of those on GFY.

Just Dave

Sid70 · 12-19-2013, 02:42 PM

Quote:

Originally Posted by JustDaveXxx

What is it that you do?

Where are your checks coming from?

Where do you live?

I have a Wyoming Corp set up. I have a DBA in California.

I also have a "Doing business as a foreign company set up in California. I also pay State taxes in California.

I also have it set up where someone else is the President with a physical address in Wyoming with a phone number and mail forwarding system.

Why? Not that i want to avoid paying taxes. Not trying to skirt the federal government and their cut of what I make. I carry insurance and workers comp insurance. I'm just an employee of my company and I don't look like the owner.(I do own all of the shares of the company) My big thing is if someone dies, catches HIV or anything unforeseen happens and it goes beyond my insurance, they won't be able to peirce my corporate vale and take everything I own personally.

Worst case situation, I can BK the company and walk away.

Corporations have so many uses depending on how you structure them. Knowing how to structure them and knowing what advantages they have for your personal and business situation is what is key.

I do have a legal background and I know how to do these things, but even I consult my attorney buddies that have "LLMs" (its like a masters degree for attorneys who are CPAs) in Tax law and I have a CPA so when I make a move, its the right move.

Hope that helps a bit. But your question is not directed to an attorney, but to a Tax specialist attorney. And those guys have CPA degrees, JD degrees and LLMs in tax law.

And from what I know, we don't have one of those on GFY.

Just Dave

Bravo.
Now, could you read the first post again.
Thanks.

11-06-2013, 08:15 AM	#1
Sid70 Downshifter Industry Role: Join Date: Dec 2002 Location: Road trip Posts: 16,413	GFY lawyers, in here! I'm about to form an LLC in Delaware. I was told about $250 franchise fee, $167 Registrered Agent fee, $377 Initial formation fee that should give me the kit and all the papers required including EIN. Questions are: 1. I need to pay franchise tax and registered agent, registered agent is not a problem but $250 yearly tax should be paid off my company account most likely. Do I need to obtain any business license at all if I only send money to my Delaware LLC to pay that tax? 2. Are there any other HIDDEN Government fees ? THanks! __________________ Русня, идите нахуй!

11-06-2013, 08:49 AM	#4
woj <&(©¿©)&> Industry Role: Join Date: Jul 2002 Location: Chicago Posts: 47,882	you will likely need to file some federal tax forms as well and possibly some with Delaware as well... so put aside few bucks for an accountant to prepare those for you... what forms, etc, depends on what you are trying to accomplish with that Deleware LLC? __________________ Custom Software Development, email: woj#at#wojfun#.#com to discuss details or skype: wojl2000 or gchat: wojfun or telegram: wojl2000 Affiliate program tools: Hosted Galleries Manager Banner Manager Video Manager Wordpress Affiliate Plugin Pic/Movie of the Day Fansign Generator Zip Manager

11-06-2013, 08:50 AM	#5
iSpyCams Amateur Gynecologist Industry Role: Join Date: May 2009 Location: Medellin Posts: 4,436	I used incnow.com it was a lot cheaper. Just got my bill today for the RA fee, its only 90 annually. I didnt pay that much for the "information package" either, though I did pay a little extra to put a rush on it, iirc. As to the 250 annual franchise fee, this is dirt cheap if you realize it is in lieu of any state corporate income tax. (unless you do business in Delaware) __________________ - As soon as I think up a good sig it's going here.

11-06-2013, 09:04 AM	#9
Sly Let's do some business! Industry Role: Join Date: Sep 2004 Location: Austin, TX Posts: 31,291	As an American, I would not do this without consulting an accountant. As a non-American, I would not even think about doing this without consulting an accountant. Best of luck. __________________ Vacares - Web Hosting, Domains, O365, Security & More - Paxum and BTC Accepted Windows VPS now available. Wanted: CCBill pay sites for sale

11-06-2013, 09:18 AM	#11
iSpyCams Amateur Gynecologist Industry Role: Join Date: May 2009 Location: Medellin Posts: 4,436	Incorporating an LLC in Delaware is a standard first step for a new marketing venture. Low taxes, strong corporate laws and good asset protection. A huge number of US corporations are incorporated in Delaware for this reason. There is nothing illegal or even shady about it. Usually my accountants have advised me to use a personal check from a personal account to open a new venture, not a corporate check from an existing business. I am not a lawyer or an accountant and I don't know what your guys would advise you in this case. __________________ - As soon as I think up a good sig it's going here.

11-06-2013, 08:24 AM	#2
bean-aid So Fucking Banned Industry Role: Join Date: Jun 2011 Location: the land of woke sleuths Posts: 16,493	Delaware must suck to form an LLC. Never heard of a $250 yearly fee to open up a business.

11-06-2013, 09:23 AM	#13
vdbucks Monger Cash Industry Role: Join Date: Jul 2010 Posts: 2,773	As an LLC, opened in Delaware, the business itself does not pay taxes. You have to file but as the sole owner, or even in a partnership, there are no profits because any money left over at the end of the year goes to the owner(s) and the business itself files as breaking even at zero. The business also pays no state taxes -- unless you do business in Delaware physically, but I'm not sure how that side works -- either. The owner(s) however, gets "double taxed". Meaning that you pay both personal taxes as well as self employment tax on the same income from the business.

11-06-2013, 10:58 AM	#19
96ukssob So Fucking Banananananas Industry Role: Join Date: Mar 2003 Location: If I was in your ass you'd know it Posts: 12,991	first, why are you trying to file in Delaware? that old tax loop hole has long closed up and the only advantage DE offers over some other states is liability protection if you are in a partnership. if you're looking to fly under the radar, I'd suggest another state that isn't a dead give-a-way of something shady about to happen. I'm not sure on the laws, but pretty sure you need to have a physical address for form an LLC, or any entity for that matter. In PA you do, and same with CA. Besides paying tax for no reason, why are you doing this? __________________ Email: Clicky on Me

12-19-2013, 02:28 PM	#28
JustDaveXxx I AM JUSTDAVE ! Industry Role: Join Date: Feb 2005 Location: LA Posts: 4,111	What is it that you do? Where are your checks coming from? Where do you live? I have a Wyoming Corp set up. I have a DBA in California. I also have a "Doing business as a foreign company set up in California. I also pay State taxes in California. I also have it set up where someone else is the President with a physical address in Wyoming with a phone number and mail forwarding system. Why? Not that i want to avoid paying taxes. Not trying to skirt the federal government and their cut of what I make. I carry insurance and workers comp insurance. I'm just an employee of my company and I don't look like the owner.(I do own all of the shares of the company) My big thing is if someone dies, catches HIV or anything unforeseen happens and it goes beyond my insurance, they won't be able to peirce my corporate vale and take everything I own personally. Worst case situation, I can BK the company and walk away. Corporations have so many uses depending on how you structure them. Knowing how to structure them and knowing what advantages they have for your personal and business situation is what is key. I do have a legal background and I know how to do these things, but even I consult my attorney buddies that have "LLMs" (its like a masters degree for attorneys who are CPAs) in Tax law and I have a CPA so when I make a move, its the right move. Hope that helps a bit. But your question is not directed to an attorney, but to a Tax specialist attorney. And those guys have CPA degrees, JD degrees and LLMs in tax law. And from what I know, we don't have one of those on GFY. Just Dave __________________ Smut Peddler Productions.com ICQ #378-696-435 / / Skype: JustDaveXxx "We shoot custom, exclusive content your way" Last edited by JustDaveXxx; 12-19-2013 at 02:31 PM..