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Nevada Corporation - please help me understand

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DKrahn

Junior Member
What is the name of your state? I currently live in California and I have a California corporation. I am starting a new business (not having anything to do with my current corporation) that will conduct business in several states. I am attracted to Nevada for the new corporation as I would like to protect my identy as much as possible, with regards to this new corporation (please offer your opinions about identity protection also with a Nevada Corp.). In addition, the tax benefits seem to be quite good. If I, as a share holder (only shareholder), do not live in Nevada - but have a "Resident Agent" that lives in Nevada - will I be protected from state tax, even if I am conducting business mainly out of California? Or, will I have to pay state tax to the state in which a certain transaction was facilitated? I.E. - the Corporation is based in Nevada, a service is performed via a sub-contractor in Florida, Illinios, Washington, etc... Will I be protected from paying state tax? Or will I have to pay Florida, Washington, Illinios, etc... the state tax for the income produced? Also, will this resident agent have to be listed as an employee or officer of the corporation, or does he exist on paper similar to an "agent for service" in a Ca. Corp.? And, If I want to conduct business in a new state, what is the proceedure for doing this? Is it as simple as opening a DBA with the corporation listed as the owner in the respected state? And, of course, gaining any professional licensure that may be required on a state by state basis.

Thank you in advance for your help in these matters - this is a great site! I urge everyone to visit the advertisers on this site - this it what keeps great services like this available to us. Support them - so they can continue supporting us.
 


L

loku

Guest
IF I, AS A SHARE HOLDER (ONLY SHAREHOLDER), DO NOT LIVE IN NEVADA - BUT HAVE A "RESIDENT AGENT" THAT LIVES IN NEVADA - WILL I BE PROTECTED FROM STATE TAX, EVEN IF I AM CONDUCTING BUSINESS MAINLY OUT OF CALIFORNIA?

If the corporation is an S corporation, you will be personally taxed by California on all your income from it because you are a California resident. If the corporation is not an s corporation, and it does business mainly out of California, the income from business done in California is subject to California Corporate Income Tax. Income from business you do for services performed in other states through subs in those states is subject to Income Tax from those states.

WILL THIS RESIDENT AGENT HAVE TO BE LISTED AS AN EMPLOYEE OR OFFICER OF THE CORPORATION, OR DOES HE EXIST ON PAPER SIMILAR TO AN "AGENT FOR SERVICE" IN A CA. CORP.?

If the agent is an employee under the Income Tax rules, then the agent is an employee. Otherwise the agent is an “agent for service of process.”

IF I WANT TO CONDUCT BUSINESS IN A NEW STATE, WHAT IS THE PROCEEDURE FOR DOING THIS?
You would have to register with the state as doing business in the state.

A word of advice: the above analysis is somewhat simplified. For example, if you do interstate business, the tax aspects are somewhat different than innerstate business. Multistate taxation is a very complex area of tax law. If the business you plan has a chance of serious growth, you should definitely have it set up by a professional tax attorney or CPA. All you can get on the Internet is general rules in this area. A well thought out plan devised by a professional tax practitioner, who knows all the facts, can save thousands in tax.
 

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