Legal Question in Business Law in New York

New York Taxes on Nevada LLCs

I live in NY and would like to form a Nevada LLC to manage my investments (primarily stocks). I will be the only member. I intend to draw a salary and reinvest the profits.

1. How does NY tax profits of foreign LLCs?

2. Are there minimum annual taxes/fees assessed on foreign LLCs that reduce/eliminate the advantage of NV's low corp tax rate?

3. In your general experience, is there a significant advantage to forming an LLC in NV or are any perceived advantages mitigated by higher annual fees, minimum tax charges, or more cumbersome logistical issues?

Thank you very much.

BL


Asked on 6/01/08, 8:05 am

2 Answers from Attorneys
Carlos Gonzalez Gonzalez Legal Associates PLLC

Re: New York Taxes on Nevada LLCs

One of the major reasons why many people blindly go to Delaware for filing is that this state probably has some of the highest levels of protection offered to any corporation, as far as law suits etc.

Now, realistically if the purpose which you seek to open a business is for the strict purpose you have stated - it may not really make much sense for you to complicate the process... however, this advice is only valid, again, if you are seeking to keeping the company strictly limited to this type of activity...

Feel free to listen to our FREE podcast on corporate law, copy and paste the link below

cgonzalezlawfirm.podbean.com

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Answered on 6/01/08, 9:53 am
Christopher Hoyt The Law Offices of Christopher W. Hoyt

Re: New York Taxes on Nevada LLCs

You should consult with an attorney about your specific business goals. There are a number of factors that must be taken into consideration when deciding where to form a new business.

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Answered on 6/01/08, 3:12 pm


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