Limited Liability Companys
Hello All,
Limited Liability Companys. If I file one in california to buy propertys and decide to do business in orgeon, do I need to file in orgeon?
or
Lets put it this way:
If I have an LLC in CA and find a good deal in OR
But have not registered as an LLC in OR
Can I still purchase it (in OR) with my California, LLC or LLC name?
I hope you understood that complicated to type lol.
One more question. How do I build up company credit? Does a FICO score apply to Companies? If not how do they decide you have a credible company to give you a loan?
Sorry that was more than one more question.
Thank you in advance.
Sincerely,
Michael
[ Edited by fmcarr1973 on Date 04/25/2007 ]
Quote:
On 2007-04-25 23:36, finniganps wrote:
I do this on a regular basis. When you buy a property in OR, you will need to start filing a return with your LLC (assuming this is NOT a single member LLC, in which case your LLC would not need to file, but you would). You do not necessarily need to register in the state of OR (there are currently no enforced penalties in OR for failure to register a CA LLC in OR). Now if you move to OR, you would need to register in OR. Keep in mind you will probably need to file a non resident individual OR return if you by property there (you will have OR source income from the property).
Hi,
What about having a S corp in CA and buying property in OR? How does a S corp differ from an LLC? Which is better all around?
S Corp.s also pay tax in CA. You should really talk to a tax advisor about what your goals/objectives are so that they can properly advise you as to the pros/cons of an entity choice, or simply not using an entity and buying insurance instead (umbrella policy). There are many variables to consider in this decision.
If this is going to be a passive investment, you might look at having an OR entity hold the property, and never bring the $$ back into CA, there by saving/avoiding/differing the taxes.
Again, millage will vary. Consult your tax adviser.
If you ever have the choice between an S corp and an LLC always choose the LLC! The S corp and LLC both have similar if not the same tax advantages (writeoffs) up to a certain amount. The benefit of the LLC over the S corp is IF YOU GET SUED, they cannot pierce the corporate vail and attach your personal assets outside of the LLC, where the S corp they can. This means not only is your S corp property at risk but so is your personal property and other assets that are in your name.
Guys,
I did a little research and found this on a web site. Also this is in response to a question later in the chain. Hope this helps......The owner of the site is a business consultant and cpa also. I have confirmed with 2 of my ny lawyers this info as well and they agree.....I did this also to make sure I setup my properties correctly.....
"It often is a good idea to incorporate your business for two basic reasons. First, you usually obtain some liability protection. With a corporation or LLC, business creditors may only be able to get repayment from the corporation. For example, if the corporation borrows $50,000 for some business purpose and then cant repay the loan, the creditor may only be able to money from the corporation. If the corporation doesnt have any money, the creditor wont get repaid. And that might be true even if the shareholders who own and operate the corporation have money.
This liability protection isnt perfect, I should note. Many situations exist where a business creditor can look beyond the assets of the corporation and to the managers and owners of the business for repayment. But when you incorporate your business, you always get additional liability protection over business forms such as a sole proprietorship or a general partnership.
A second benefit accrues when you incorporate your business, too. The right corporate choice can produce big tax savings for businesses. Tax law views corporations either as C-corporations or S-corporations. C corporations can provide all their employees, including shareholder-employees, with generous tax deductible fringe benefit packages. S-corps allow shareholders to avoid double-taxation on profits and sometimes allow shareholder-employees to save on self-employment taxes.
You have undoubtedly heard of limited liability companies, also known as LLCs. You may therefore be wrestling with the "forming a LLC vs Scorp" question. An LLC is another way to get liability protection. And in many cases, LLCs represent a superior form of liability protection. An LLC doesnt require as much red tape as a corporation. An LLC is also a chameleon for tax purposes in other words, an LLC can be treated as just about anything for tax purposes. An LLC with one owner (called a member) can be treated as a sole proprietorship, a C-corporation, or an S-Corp. An LLC with two or more members can be treated as partnership, a C corporation, or an S-corp."[ Edited by ddipaola on Date 06/20/2007 ]