Incorporation Gurus, In Here Now: Is this Legal? - GoFuckYourself.com

minusonebit · 10-21-2006, 11:35 PM

OK, assume that I form 10 Incs/LLCs in Neveda. Each of them for a specific site or group of sites, they all have different focuses and for this and other reasons I dont want them all under the same legal umbrella. I dont live in Neveda, and will be maintaining the sites from home which, for example, lets assume is located in Oklahoma.

Even though I have formed Neveda corporations, I am obligated to domesticate (register as a foreign corporation) in Oklahoma all ten of the corps I formed because I would have a business presence in OK and be routinely conducting operations from there, which will be a PITA and will be expensive, costing me more Registered Agent fees and not to mention filing fees with SOS or whatever.

Here is the thought: I form an 11th corporation in the state in Neveda and domesticate it in the state in which I reside. This 11th corporation contracts with my other 10 corporations to manage, without limitation, all of thier affairs, including website updates and ad placement and everything, and I just happen to sit on the board of these companies and award these very lucrative contracts (which just so happen to be worth the exact amount of revenue each corp brings in, so at the end of the year, they show a break even or a very small profit). The idea is that then only the 11th corporation has a business presence in the second state, the only connection the other 10 have is the fact that the executive management (me) lives in OK.

This 11th corp is also a webhosting company that serves only "internal" clients (my other 10 corps) and I am an actual employee (direct deposit through ADP, the whole works) of this 11th corporation only, the other corporations have no employees, only independant contractors.

From a paperwork perspective, this seems better (filing payroll taxes and doing payroll on one corporation instead of 10, etc) but is it legal.

TheDoc · 10-21-2006, 11:46 PM

I think you have to register the foreign corp in your state if that corp pays you, ie you work for that company.

Or you local CPA can clear this up in a few seconds.

edgeprod · 10-21-2006, 11:48 PM

President Bush disapproves. One-way Cuba time!

Webby · 10-21-2006, 11:56 PM

Can't say specifically on your LLC's, but check with a laywer for anything along the lines of "common directors" or corporate officers and the implications which may arise from this

studiocritic · 10-22-2006, 12:20 AM

this seems straight up from what i've heard of others doing..

but no one here is a lawyer, and definitely not in oklahoma. call one.

squishypimp · 10-22-2006, 12:51 AM

just to be save make sure you hit up your local cpa and lawyer.

MikeSmoke · 10-22-2006, 02:20 AM

i do something very similar - but it was drawn up and worked out by my lawyer and CPA. Everyone else is right - talk to yours to make sure it's done right.

10-21-2006, 11:35 PM	#1
minusonebit So Fucking Banned Join Date: Feb 2006 Location: [email protected] Posts: 7,391	Incorporation Gurus, In Here Now: Is this Legal? OK, assume that I form 10 Incs/LLCs in Neveda. Each of them for a specific site or group of sites, they all have different focuses and for this and other reasons I dont want them all under the same legal umbrella. I dont live in Neveda, and will be maintaining the sites from home which, for example, lets assume is located in Oklahoma. Even though I have formed Neveda corporations, I am obligated to domesticate (register as a foreign corporation) in Oklahoma all ten of the corps I formed because I would have a business presence in OK and be routinely conducting operations from there, which will be a PITA and will be expensive, costing me more Registered Agent fees and not to mention filing fees with SOS or whatever. Here is the thought: I form an 11th corporation in the state in Neveda and domesticate it in the state in which I reside. This 11th corporation contracts with my other 10 corporations to manage, without limitation, all of thier affairs, including website updates and ad placement and everything, and I just happen to sit on the board of these companies and award these very lucrative contracts (which just so happen to be worth the exact amount of revenue each corp brings in, so at the end of the year, they show a break even or a very small profit). The idea is that then only the 11th corporation has a business presence in the second state, the only connection the other 10 have is the fact that the executive management (me) lives in OK. This 11th corp is also a webhosting company that serves only "internal" clients (my other 10 corps) and I am an actual employee (direct deposit through ADP, the whole works) of this 11th corporation only, the other corporations have no employees, only independant contractors. From a paperwork perspective, this seems better (filing payroll taxes and doing payroll on one corporation instead of 10, etc) but is it legal.

10-21-2006, 11:46 PM	#2
TheDoc Too lazy to set a custom title Industry Role: Join Date: Jul 2001 Location: Currently Incognito Posts: 13,827	I think you have to register the foreign corp in your state if that corp pays you, ie you work for that company. Or you local CPA can clear this up in a few seconds. __________________ ~TheDoc - ICQ7765825 It's all disambiguation

10-21-2006, 11:56 PM	#4
Webby Too lazy to set a custom title Join Date: Oct 2002 Location: Far far away - as possible Posts: 14,956	Can't say specifically on your LLC's, but check with a laywer for anything along the lines of "common directors" or corporate officers and the implications which may arise from this __________________ XXX TLD's - Another mosquito to swat.

10-22-2006, 12:20 AM	#5
studiocritic Confirmed User Join Date: Jun 2005 Location: Irvine, CA Posts: 2,442	this seems straight up from what i've heard of others doing.. but no one here is a lawyer, and definitely not in oklahoma. call one. __________________ 254342256

10-22-2006, 12:51 AM	#6
squishypimp PostMaster General Join Date: Aug 2006 Posts: 10,781	just to be save make sure you hit up your local cpa and lawyer. __________________ Signature For Sale

10-21-2006, 11:48 PM	#3
edgeprod Permanently Gone Industry Role: Join Date: Mar 2004 Posts: 10,019	President Bush disapproves. One-way Cuba time!

10-22-2006, 02:20 AM	#7
MikeSmoke Confirmed User Join Date: Nov 2002 Location: SoCal Posts: 3,233	i do something very similar - but it was drawn up and worked out by my lawyer and CPA. Everyone else is right - talk to yours to make sure it's done right. __________________ icq: 541-739-92