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Old 09-01-2002, 02:05 PM
FireHawk
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Delaware v Florida tax liability


What is the name of your state? Florida

This is a 3 part question...
I'll be filing an LLC shortly for a home based 'Net bus. selling an ebook I wrote, as well as getting income on various affiliate programs which I refer from my site.

I'd like to know if it would be more cost effective for me to register in Delaware or Florida. In other words, what is the difference in tax liability if the company (LLC) is registered in Delaware, but does bus. from FL? If this is too complex for this forum, can you direct me to a site that may help me?

I will be manager, sole owner. Is it more reasonable to take draws at ordinary income (what is %?) or salary?

Also, I've been trying to find the appropriate NAIC code. I think it's 516110, but I'm not sure. If you could direct me to where I can find out about the proper ebiz NAIC code, I'd be forever grateful.

Thank you in advance!
  #2  
Old 09-03-2002, 06:08 PM
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Join Date: Aug 2002
Location: Washington
Posts: 3,484
1. You'll file a tax return in FL, where you do business, and probably in DE, where you're registered. The whole DE corporation thing came about when DE had better laws regarding corporate/director liability than most other states. There's little difference now.

2. As an LLC, you'll report income & expenses on Schedule C, and pay income & self-employment taxes on the net profit. You can't employ yourself unless you go all out and form a C or S corp. Draw or salary, makes no difference.

3. Your NAIC code is the one for non-retail sales or home-based sales. Don't know the number off the top of my head.
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