[cnarcisse21]

I am from Chicago and in the process of starting an online business. I would like to form an LLC but am thinking about which state to go through. I have heard that Nevada and Delaware are the best because of their lenient tax laws and anonymity. We don't have a physical location in Illinois and are not planning one setting up in Delaware of Nevada.

I was wondering if it would make sense as a startup to go through one of these states instead of Illinois? Albeit without a physical location, would we still be able to take advantage of the tax laws of a Nevada or Delaware? Is it worth it or should we just stick with Illinois? I need help! Thanks.

[GuyBBY]

The state in which you file in will rarely matter unless of course you will be an S or C corp. An LLC allows for a passthrough taxation set up, meaning you are treated as a partnership and will be having company taxes passthrough the LLC to your own personal accounts.

Also, depending upon your type of business, there are some statues and fees and legal issues that each state may vary in.

If you are more specific I am sure some other responses will start coming in.

Best

Guy


PS: Delaware vs. Nevada | Incorporation and LLC State Comparisons - Delaware Versus Nevada

[Logan Baker]

Set up in Delaware. We did. You wont pay any taxes in Delaware....it has nothing to do with tax. You will still claim your income where the company & you are physically operating out of. All you need is a physical address - doesn't have to be on your website or public to anyone but the government (they know where you are anyway). Ther ARE benefits to being an LLC - it makes taxes easier (here in KY) and for example, an LLC can only be sewed for the amount of cash it has on hand at a time. Pretty sweet if you are in a business that carries much liability. Obviously do the best you can and be ethical but you dont want to lose your unborn child if someone wins a frivilious lawsuit against you.

Logan Baker
schoolmarquee.com

[New Texico]

sorry wrong section I will repost this in a new thread.

[jp2010]

LegalZoom: Online Legal Document Services: LLC,Divorce,Wills,Incorporation & More has a low cost incorporating option. If you have questions about which state to choose and why, you may want to contact them via phone.

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Originally Posted by Logan Baker

Set up in Delaware. We did. You wont pay any taxes in Delaware....it has nothing to do with tax. You will still claim your income where the company & you are physically operating out of. All you need is a physical address - doesn't have to be on your website or public to anyone but the government (they know where you are anyway). Ther ARE benefits to being an LLC - it makes taxes easier (here in KY) and for example, an LLC can only be sewed for the amount of cash it has on hand at a time. Pretty sweet if you are in a business that carries much liability. Obviously do the best you can and be ethical but you dont want to lose your unborn child if someone wins a frivilious lawsuit against you.

Logan Baker
schoolmarquee.com

Are you sure that it's best to set up an LLC in Deleware? I have a feeling that you're thinking of incorporating, which is a different story.

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Originally Posted by jp2010

LegalZoom: Online Legal Document Services: LLC,Divorce,Wills,Incorporation & More has a low cost incorporating option. If you have questions about which state to choose and why, you may want to contact them via phone.

Again, I think the original poster wanted to file an LLC, which is different than incorporating. Might want to consider that.

[SerialEntrepreneurs.]

you can also check out IncorpLaw.com, Blumberg or Incorporate101.com

they all work well and offer advice