I happen to be both, all I can say is register the llc where you work. If you want anonymity, you have to do some additional work.
Llc is a state statue, federal government doesn’t have it. You can be a LLC and taxed as a corp…
Any tech startup that has any plans to take outside money should be a Delaware Corp., barring any compelling reason to the contrary
Isn’t registering a car outside of a state where it’s garaged technically insurance fraud? Even if you have an LLC there? @josh
Not only that but tax fraud as well?
Exactly what it was for my apartment we are in now. We got it in Dec 2012 which was almost the bottom for RE prices around coinciding with bottom in mortgage rate at the time.
Isn’t this exactly what the rental car companies do? They register / insure their fleet vehicles in states that work to their advantage. I can’t recall ever renting a car in NJ that had NJ registration, many are from FL.
It depends on what you are trying to accomplish - Given you are in technology, you will probably be very concerned with IP rights and ownership, in which case, places like Montana would be a horrible choice. You should really spend the ~300 bucks to consult with an attorney or CPA and not take the advice of anyone on here, including myself, even though im a 26 year Atty.
It’s different in a business setting. You just need the right lawyers and accountants to set up your business. Interstate commerce also brings a slew of federal laws into it.
This is right. Delaware is the corporate HQ king because of its Courts and laws…but mostly Courts.
The only issue with registering in Delaware right off the bat is personal jurisdiction. A company can always be sued in its jurisdiction of incorporation. If you are a small company in California, you may not want go through the expense of defending yourself in Delaware.
You have to foreign file in California anyway…
It’s a legal loophole, but also fraud. You’re registering a car outside the area it’s owner and operated for the express purpose of either not paying certain taxes or insurance. That’s fraud, though hard to enforce because of loopholes.
How is it hard to enforce? The owner clearly set up the LLC to defraud their home states government of tax revenue. The sole purpose of the LLC was to commit a crime of tax evasion, pretty easy when the “LLC” has no revenue, no clients and one exotic car registered to it.
Do you see a lot of enforcement going on with existing LLCs?
I agree. if caught, the best outcome is to pay the taxes and the penalty. not going to be able to defend (or worth it). The authorities generally just send a demand note. No state revenue swat team descends on your house and frog walks you to the county jail.It’s akin to receiving a large ticket. You are asked to submit proof of valid residence or pay back taxes and register in the state.
Every year when a single member files their personal tax returns, yes. They’re still paying tax in their state of residence.
Foreign multi-member LLCs who try to hide the income? Eventually some it passes to them. The owners TINs are on file with the taxation election (IRS 8869) and in the LLC articles of organization.
Have none of you pulled your IRS master file before? I’m not saying you can’t hide income, but the care it takes to move so little money it doesn’t trace back…it’s not as easy as TV makes it look.
If you are committing fraud they don’t just send a demand letter. If you don’t pay a known expense ontime or calculate tax owed wrong, you get a demand letter.
Now I just need a way to register those in a non-tax state
Does NJ support Domicile? Thats the only state I can think of unless OR does.
Im looking at OR actively. Trying to understand what I need to do to legally do this. maybe I shud rent an apartment for 1 month
Technically 6 months for Domicile, and it can be a campground! haha