Leonard Porter posted a new question on 11/30/2009
I want to make Wyoming my "company headquarters" and do business in other states. I live in Clarksville, TN and but do a lot of business outside of Tennessee and want to know about the tax issues of having a LLC company headquarters in Wyoming and living in Tennessee? My company designs, installs and sells audio, video and lighting equipment to churches, commercial and residential. We are looking at a resident agent, with a full address in Wyoming and I am even thinking about changing my cell number to match the Wyoming Area. I have most of this thought out, but I want a second opinion so I won't run into a lot of tax issues with IRS.
The business will be classified as a consultant, not a retail store.
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David Sneed Responded on 12/1/2009
Consult with a local lawyer. Here is some of the reason why.
The taxes to IRS are the same no matter where you incorporate.
The state taxes for a corporation are due wherever you are doing business. And oif you are a big money athlete you will get a W-2 for every state where you play a game.
If you want to start a Wyoming LLC then first move to Wyoming. I live there and it is a great place to be. One advantage is that there are no state taxes. If you are living elsewhere and doing business elsewhere you will have tio file as a foreign corporation and pay taxes in those states for business done there. It can be a nightmare to keep up with it.
There are internet services telling you about incorporating in Wyoming, Delaware and certain other states. Many large public companies are incorporated in Delaware but they also have a staff of lawyers who keep up with the filings in all the other states. Delaware is good for the franchise tax if you have hundreds of millions of shares.
Having a front business in one state can get you into a whole lot of trouble, Ask your lawyer what racketeering means and how long you can go away for that.
Best advice is get a good business going, incorporate in TN and do things completely by the book.
David Sneed SCORE Wyoming www.scorewyoming.org
