Was thinking of moving LLC from CA to WA (sales, renters)

[hotscot]

I miss rain. I'm from Scotland.

I was thinking of moving my LLC from CA to WA

From my research it seems that I would be taxed on revenue and not profit?

I sell scientific instrumentation to National Labs and Universities around the country. So I would be taxed on that revenue?

For example, I may sell and instrument package for $1,000,000 but the margin could be very small.
In addition I spend a lot of my year on business travel to conferences around the world.
It seems I wouldn't be able to deduct any of that travel?


I'd love to move to WA but I don't see how it could work...

(In addition, does B&O tax only apply to sales within WA? The majority of my sales would be outside WA.)

[StealthRabbit]

B&O is on 100% gross revenues... Yes you can lose money and still OWE WA B & O (usually quite low tax, but depends on your product.)

Go to WA DOR and take the online classes. Then you will probably form your LLC in NV or MT or like the big boys... DEL or in a US protectorate.

Hundreds of businesses flee WA every yr. Idaho claims the WA DOR is their BEST friend, bring lots of companies, jobs, wealth to ID. . Good thing you are not a dairy farmer, it is a PITA to move a generations old HUGE farm... But WA vote is controlled by two counties of renters and employees. They don't take into acct that the measures they vote on are putting their employer and food grower out of business. The remaining 37 counties are not represented, and endure the pain till they can no longer afford to keep a business running in WA.

Definately flee CA for your LLC, most my CA suppliers chose NV. SD has the easiest domicile requirement for an income tax free state (one night per lifetime). My internet sales clients / friend often go to US Virgin Islands. Good place to go during 280 days overcast in WA on paid company travel.

[hotscot]

That's a shame...I've always fancied WA. However taxes...

[StealthRabbit]

Originally Posted by hotscot

That's a shame...I've always fancied WA. However taxes...

Taxes.... I pay $40/ day ($14,400/ yr + 18% for 2016). for WA property taxes on a residence that used to be $3/ day. Built for $100k, taxed on $1m.

If ever leaving CA, Retain any CA prop 13 benefit, I had thousands of bay area coworkers who came to Colorado, Oregon, Washington, and Idaho. The smart ones retained property in CA so they could 'stay-in-the-game'. Most returned for retirement PT, while keeping a WA domicile.

Business taxes are another animal.

Such as retail food.... Offer napkins on the same counter as that donut?, then the sale is taxable. If napkins are on a different counter / table, then the donut is tax free. Very complicated.
Be sure to understand Use tax and Personal Property tax on business assets (such as paper clips, office chairs, waste baskets, pencils,...)

If you sell or perform services to more than one WA taxing district, you need to itemize and charge each area differently. (Based on local levies / business taxes)