NJ CO-Work Space Message Board › Which State to Incorporate an LLC
|A former member||
Are there tax/other advantages to incorporate outside of NJ?
The way I understand the law, the taxes will flow through each individual's return (whichever take you live in) and you cannot have untaxed retained earnings under the LLC format.
Is this correct?
Other considerations would include each state's case law, filing fees, annual updating filing fees, and additional applications if operating outside your domestic state (state where you register).
Robert M. Cavezza
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|Sean R S.||
Delaware is the other major consideration. I've heard from a lawyer that if you are a startup establishing an LLC that will operate in NJ and/or you live in NJ, you might as well do it in NJ because the laws are close enough these days so that whatever benefits Delaware offers is not worth the hassle of filing taxes for 2 states. Those who know they want outside investors, specifically VCs, know they may have to go Inc and some prefer Delaware, but supposedly the conversion to Inc is easy.
Good topic! It would be great to hear what others are thinking and/or have heard. Comments from a lawyer would be best if there's one in the group.
As an aside, you should add Braun to the Facebook group as an adiministrator.