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Old 06-16-2011, 05:37 AM
 
Location: USA
79 posts, read 162,287 times
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With LLC, you are not accountable personally in case of debts or liabilities. The members’ personal assets are not included in the LLC so these cannot be sequestered when problems do arise. Also consider the expenses involved such as initial fees. It is not an easy task when transferring ownership to LLC.
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Old 06-16-2011, 05:59 AM
 
24 posts, read 36,296 times
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Hello,

Can you form a LLC ... let's say in Florida and live in Connecticut and file under Florida's no state income tax?

Thanks
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Old 06-18-2011, 06:58 AM
 
10,135 posts, read 24,333,921 times
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Quote:
Originally Posted by capamando View Post
Hello,

Can you form a LLC ... let's say in Florida and live in Connecticut and file under Florida's no state income tax?

Thanks

You can form an LLC anywhere, but you need a registered agent within the state. This can be a person who lives in the state or one of the many "registered agent services" who serve as your registered agent for an annual fee. Usually less than $200 per year.

Even so, your income in Connecticut is determined under Ct. rules, not Florida (which has no income tax). If your LLC is taxed as a pass through entity you will still pay Ct. tax. If it is taxed as a regular corporation it will not be taxed in Ct. for the time being.

Many companies have Tennessee or Florida affiliates to concentrate income in a state with no income tax. Let's say you live in Ohio and have substantial operations in NYC. If the entity is structured such that the profits end up in the affiliated group member created in Tennessee, then NYC and NY State income taxes will be reduced. You will still have to pay Ohio income taxes if you receive that income in the form of salary or bonus in Ohio.

Note that these high tax states and cities attempt to agressively reallocate income to their states with formulas, and audits, etc. They usually fail in overcoming good planning.
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Old 08-12-2013, 03:48 PM
 
1 posts, read 3,304 times
Reputation: 10
Default LLC or Independent contractor Insurance for a Zumba Instructor

Hi
I just moved from Sweden to Miami, Florida. I am a certified Zumba instructor and has worked for Gold's gym and independently as a Z- instructor in Sweden for many years. Never had to worry about getting sued. Now I want to continue to work as a Zumba instuctor independently but I don't want to get sued. What is my best option? I have been doing some research but I would like some advice from you. What do I do first?
Get an EIN? A name for my business and then register it with the IRS? LLC or Independent constractor Insurance? I sketched a waiver for everybody who takes my classes to sign.
I appreciate it for any advice you can provide, thank you.
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Old 10-30-2013, 10:35 AM
 
2 posts, read 6,220 times
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Default General Questions

So, some general question here:
1) Do all LLC require liability insurance; I am just a consultant getting a 1099 form; not doing construction, etc?
2) Is there any advantage to not getting an LLC?
3) Also, I won't need an accountant to do my taxes will I? Isn't it relatively easy to just use 1099 form and a few IRS forms?
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Old 10-30-2013, 10:39 AM
 
2 posts, read 6,220 times
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One more concern that someone brought up is this:
"Why does the company I work for as a sales consultant ONLY require me to set up an LLC? Why can't I work as an independent contractor and receive a 1099 from your company?"
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Old 11-02-2013, 09:06 AM
 
1,475 posts, read 2,326,764 times
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Quote:
Originally Posted by liloulou View Post
What would be negatives to opening an LLC, as a sole person, no employees? Does it matter compared to being a contractor? I mean I could still do a website and business cards (I think) without forming an LLC.
The idea behind forming a "company" and making it a separate legal entity is to "separate it" from yourself. Keep in mind there is such a thing as piercing the corporate veil. If you are the sole owner and the sole worker who do you feel should be responsible for the mistakes made by the business?

You can do a website and business cards etc. without forming an LLC or any other structure. In fact operating a business as a sole owner and worker really means you have a sole proprietorship.
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Old 11-02-2013, 09:11 AM
 
1,475 posts, read 2,326,764 times
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Quote:
Originally Posted by agallup7 View Post
One more concern that someone brought up is this:
"Why does the company I work for as a sales consultant ONLY require me to set up an LLC? Why can't I work as an independent contractor and receive a 1099 from your company?"
There are restrictions as to whether or not the hiring company is responsible for employee taxes. If a separate legal entity like an LLC or Corporation contracts with a company then the company only pays a straight expense for the services rendered. If a person contracts the work the hiring company may be responsible for taxes.
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Old 11-04-2013, 05:37 PM
 
Location: Florida
23,649 posts, read 10,752,657 times
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Quote:
Originally Posted by NJBest View Post
Just to add onto this a little. It's best to elect LLC in a state that allows you to elect parternship status (this assumes you have a significan other, family member, or someone trustworthy you can share 1% of the company with). This way, you can take salary, and profits. No double-taxation of corporations and great tax benefits.

This should give you a shelter of about $212K before you start paying any significant taxes.

** I am not a CPA, or a Lawyer. I am just a business owner and this is not advice. **
Not sure what you mean by partnership status. E.g., in Fla, you can have a single member or multi-member LLC, or you can have a Partnership (LLP, LLLP or GP), which is a different type of entity with different laws and tax rules. If you want to have your spouse as a member of your LLC, you can both own the LLC as tenants by the entireties, meaning you each own 100%, so you have asset protection and you can only own it that way with a spouse, not another family member (similar to deeded property). But if you own it 50/50 with your spouse or anyone else, it does not offer the same protection. In an LLC you would each be a 'member,' not a partner.
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Old 11-09-2013, 12:16 PM
 
Location: Some T-1 Line
520 posts, read 883,338 times
Reputation: 448
Great forum with some great dialogue.

I have a question that I need help with. I have a rental property. Since owning the rental property, I now have been owing the government on my yearly taxes because of the additional "income" from the rental even though the income (rent) and my expenses (PITI, upkeep) pretty much was each other out. Before the rental and the additional property "income", I always got back.

I had an LLC for different purpose (even had an EIN), but want to revive my LLC and hopefully file separate income tax which reports the property income and expenses. Would an LLC be sufficient or do I need to incorporate?

I saw Wilson's earlier posting stating "A sole member LLC is a "disregarded entity" for IRS purposes. It files no tax returns. you pay your taxes as though it did not exist." I took this to mean that LLCs cannot file separate taxes.
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