# LLC, S Corp, or Partnership



## Probability (Jul 9, 2011)

Hi,

My friend and I are starting a website where we will be selling tees and various other apparel type items. I am based in Thailand but was a resident of CA before I moved and my partner still lives in CA. 

What entity will benefit us the most when tax time comes?

If we incorporate or pick LLC can we do it in a state with lower / no sales tax?

Is there any general information or suggestions anyone has?

Thanks in advance.


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## binki (Jul 16, 2006)

it depends on where you operate. if you are going to be based in CA then form a corp in CA. If you are out of the country then you only need to follow the rules where you operate from.


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## FlustardMal (Jul 11, 2011)

Technically you can foreign file your company in any state. Delaware is very friendly to foreign businesses wanting to license in their state. Delaware is also well known as one of the most LLC friendly states in the US.

If you have the option of choosing a non-CA state to license in, do your homework. You can save money or get tax loopholes. Nevada and Wyoming are also well regarded as being business friendly.

Keep in mind, if you license in a state where you or your partner are not residents, you'll have to pay annual resident agent fees. They can be costly - hundreds per year. Factor that cost in to your decision. If you license in the state where your partner lives, he/she can be the company's resident agent and avoid paying those fees.

Best bet, Google around and/or consult an attorney.


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## Aidonia (Aug 17, 2011)

For those who operate as an LLC, is being your own registered agent an ok idea?


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## DivineBling (Sep 14, 2010)

Aidonia said:


> For those who operate as an LLC, is being your own registered agent an ok idea?


My partner and I formed an LLC here in CA and I was going to just list myself as the registered agent, but we had CorpNet file for us and they give a year for free so I just went with them. Next year I'll switch it to either myself or my partner.

After paying them, though, I discovered that it's fast and easy to file yourself so I wish I had just done everything by myself.


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## Flatcallbrand (Aug 17, 2011)

LLC prob is best pick your assets are safe and is cost effective


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## clclothing (Jul 27, 2011)

LLC is probably best.

File it yourself and save money unless your state is too confusing. FL is easy and everything you need is at the state website.

You only need a registered agent if you file in a state that you do not have an office in that can accept correspondence. If you register in your home state, you can do it yourself.

Registering in a state with no sales tax does not help you... It is corporate tax advantages that you might look for. I have never found it to be worthwhile for the extra cost of filing a small business in another state and having to pay for a Reg Agt.

If you have an operation in a state that collects sales tax you will have to collect and pay in that state regardless of where your corp is filed.


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