Is it legal to have a LLC and store all your earnings from a business in Nevada from another state?

Question

Is it legal to have a LLC and store all your earnings from a business in Nevada from another state?

Answer 1

It's legal, sure, but it won't save you a dime in taxes.  You'll pay MORE in total tax prep (and possibly taxes at the State level) with an LLC so don't waste your time and money forming one of tax savings or tax avoidance is your goal.  We won't even discuss tax evasion; that's always illegal and can land you in prison.

Where you live and where the income is earned determines which State or States have a right to tax the business income.  The State that the LLC is formed in is irrelevant.  What you do with the income once it's earned is irrelevant.  Earning it triggers the tax liability and trying to salt it away under the color of an LLC doesn't change anything as far as the Tax Man is concerned.

Answer 2

Yes it is legal. But whether you have to pay state taxes on it depends on the state law of both the incorporating state and the state you earn revenue in. You can incorporate in any state even if you don't live in it. But you usually have to pay taxes in the state the revenue is earned in. Some states have reciprocal agreements that make you have to pay in only one state. As for federal taxes you will have to file regardless of where you money is earned.