I need help with my llc formation?

Question

I want to make a llc business. my business partner is in texas. texas is where the offic will be and the bank account. basically i talk to get customers from the west coast like ny philadelphi. etc, will i get trouble for that. also when i get taxed will i get taxed more because i live in ny and my business is in texas. i dont know what to do . what forms do i need. also what is with the pulishing in paper thing.

Answer 1

I just helped my company to set up LLC in California.  We have office in both LA and NY. We have been in business since last August.  The company has 3 partners, one in NY, One in LA, and one is a UK citizen.  Basically, in your situation, although is LLC which supposely has option to file tax return as corporation.  But you mentioned that you have a partner, so it's LLC but it's treated as partnership when it comes to tax return.  For partnership, any net income for the company will pass thru to individual tax returns, which is call Form 1065.  How much tax liability based on the operating agreement for profit sharing.  I suggested you talk to an accountant from texas who knows the tax laws there.  As different states have different guidelines.  Besides, LLC still has lots of flaws because it just existed for the last few years. You definitely need to pay business tax in Texas, and the profit generated from your business will go to your personal income tax.

Answer 2

I would consider forming your LLC in Delaware.  They have the most business friendly courts and there are many companies that specialize in forming Delaware companies.  Biz Filings comes to mind.  Delaware has no state corporate income taxes, although there are some yearly fees.  I don't know the Texas tax/fee structure for LLCs, but in some states it is a simple matter to incorporate, but quite difficult to disassociate from that state if your partner decides to move.  Being incorporated in Texas could give you statutory nexus there even if your partner moves to another state.    I suggest you speak to your accountant.