How To Set Up My Company???
I was going to set up an L.L.C. I am setting up my company in California. It says in one place that you have to pay $800 a year for it after making $50,000. But, a couple of other places said you have to pay the $800 within 3 months of forming the L.L.C.
Does anyone know about this?
What would be the advantages of an "S" corporation instead? :-?
May I ask why you are in VA and setting up your company in CA? Why not NV or DE? You should look into the franchise tax rate, state corporate income tax rate, etc. for a) the state you will have the entity set up in and b) the state(s) the entity will be doing business in.
For example, in Texas, while there is no state income tax for corpo, LLCs, S Corps, etc pay an annual franchise tax - this is a privilege tax for the legal protection the entitiy provides and is based on taxable assets or income.
You should consult an accountant familiar with the states you will be involved with.
MFS1:
I would definitely consult a tax professional regarding this issue. There are important tax and real estate transfer implications in deciding which one is best for you.
But no one here can give you a definitive answer that would be right for you without knowing a) your specific investment strategy and b) your current tax situation. That's best left up to a professional--preferrably a CPA who is real estate investing savvy.
The best use of this forum would be to gather opinions and info and use them in your interview with the CPA. To do this, you should fill us in a little on how and what you're planning to invest in.
Andy
Re: Why California To Set Up My Company when I LIve in Virginia?
I am partnering with my brother in California(my home state). Since the properties are in california I was told I needed to set up the corp. in California. I don't want to do any fancy stuff I don't understand like DE, just simple for now. I plan to invest in foreclosures by flipping. I was once a landlord and I hated it![ Edited by MsFinancialsavvy1 on Date 04/14/2004 ]