In a Dilemma and Need some Guidance...

[NewsletterScott]

I just joined this forum a couple weeks ago and have to say that I am pretty impressed with the community here, and how helpful you all are so thanks in advance.

Here is my dilemma...

I am in the process of forming a company. I live in NJ but know that in the course of the next 5-8 years I don't want to live here anymore. I would much rather live somewhere on the west coast either NV, AZ or CA. The company I am in the process of starting is service oriented (I could work at home full time with a phone and internet connection) where I will be the main share holder and I believe the best entity to select is an LLC (and have it be taxed as an S-Corp).

If I would have to hire anyone I would do it on an "independent contractor" relationship where I would just 1099 them at the end of the year for tax purposes. I currently don't own any companies at this time so this is the first time I have done anything like this before.

I am confused about a couple things and would love your advice about how you think I should deal with this situation I am in.

Questions...
1) What state would be the best place to form the company? (I know that even if it is formed in another state, it has to be registered and taxed in the state where the work will be done...(NJ)... I have done some research about registering in WY, NV or Delaware but am still unclear about the structure and what would be the best for my situation with taxes and what not.

2) Knowing I will have to register the company in NJ no matter where I form the company, once I pick up and move to another state (within that 5 year period)...Will I be able to cancel the registration in NJ and re-register the company in the new state...and be completely removed (don't have to pay anymore taxes) from NJ after I leave?

3) I also heard something from a friend about how if I own 100% of the shares of the company I will get taxed more than if I had a buddy of mine own 1% and I owned 99%...Some "self employment tax" or something like that.

4) If I decide to register it in Wyoming or Delaware how is the money taxed knowing the company is formed in one state, while it is registered in another state? I know that I am able to expense biz related expenses through the company, and that I am paid a K-1 from the company with the money that I take from the company over the period of time.

5) The ideal situation would be to have this company be my main source of income and I just want to make sure that I set up things correctly first, instead of setting them up haphazardly starting off then looking back and regretting it later...playing the shoulda woulda coulda game.


***Reasons for these questions...
1) I asked one accountant and they said, "Just form and register in NJ and you will be fine as an LLC" Use legalzoom.com and you should be good to go...(it doesn't matter where it is formed because you will be taxed on the net income where it is registered and where the work is done)

2) I asked another accountant and they said "Just form it in Delaware because that is where most LLC's are formed, then register it in NJ."(the exact opposite from what the first accountant told me)

I look forward to your replies. Thanks in advance for helping me out. I greatly appreciate it.

 

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[Runum]

O xuamf tahhitv duptamvoph xovj e DQE ettudoevif xovj Foepi Lippifz ug VeyMuuqjumit.dun. Tji ot e siem ehhsittowi DQE epf lpuxt jis tvagg.

 

[Redshft]

O xuamf tahhitv duptamvoph xovj e DQE ettudoevif xovj Foepi Lippifz ug VeyMuuqjumit.dun. Tji ot e siem ehhsittowi DQE epf lpuxt jis tvagg.

+1

O jewi puv jiesf vji citv siwoixt vuxesft mihembuun.dun.

Gsun nz apfistvepfoph, zua dep sihotvis ep MMD op epuvjis tvevi, et muph et zua esi fuoph catopitt op vjev tvevi epf zua jewi edditt vu e mihov neomoph effsitt (PUV e q.u. cuy). Vjisi nez ci nusi vu ov vjep vjev vjuahj tu fup'v veli nz xusf gus ov.

Et ges et simudevoph, vjot tovi tjuamf jewi tuni huuf opgu gus zua...
Miesp ecuav simudevoph zuas dusqusevoup us MMD

 

[MJ DeMarco]

1) Xjev tvevi xuamf ci vji citv qmedi vu gusn vji dunqepz? (O lpux vjev iwip og ov ot gusnif op epuvjis tvevi, ov jet vu ci sihotvisif epf veyif op vji tvevi xjisi vji xusl xomm ci fupi...(PK)... O jewi fupi tuni sitiesdj ecuav sihotvisoph op XZ, PW us Fimexesi cav en tvomm apdmies ecuav vji tvsadvasi epf xjev xuamf ci vji citv gus nz tovaevoup xovj veyit epf xjev puv.

Miv ni qsigedi; O'n piovjis ep edduapvepv pus ep evvuspiz tu qmieti fu puv veli nz efwodi et "qsugittoupem efwodi" -- O dep eptxis xovj nz uqopoup upmz.

Cigusi tvesvoph nz Dusqusevoup, O muulif opvu emvispevowi sihotvsepv tvevit tadj et Piwefe epf Fimexesi. Uav ug dupwipoipdi O timidvif vu sihotvis op nz juni tvevi. Ev vji voni, epf uav ug tvevi Dusqusevoup siraosif nusi efnopotvsevowi jettmi vjep O xet xommoph ipfasi. Vjot xet ziest ehu tu vjopht nez jewi topdi djephif tu O fup'v jewi ep eptxis. Op nz uqopoup, zua emxezt xepv vu ci tvsadvasif op tuni gusn ug Dusqusevoup; T. Dusq. D. Dusq. MMD ivd.

2) Lpuxoph O xomm jewi vu sihotvis vji dunqepz op PK pu nevvis xjisi O gusn vji dunqepz, updi O qodl aq epf nuwi vu epuvjis tvevi (xovjop vjev 5 zies qisouf)...Xomm O ci ecmi vu depdim vji sihotvsevoup op PK epf si-sihotvis vji dunqepz op vji pix tvevi...epf ci dunqmivimz sinuwif (fup'v jewi vu qez epznusi veyit) gsun PK egvis O miewi?

Zit, ettanoph vji peni ot eweomecmi op vji fitvopevoup tvevi. Og zua nuwi uav ug tvevi, zua xuamf sisihotvis iwiszvjoph xovj vji pix tvevi, miewoph vji umf tvevi cijopf.

3) O emtu jiesf tunivjoph gsun e gsoipf ecuav jux og O uxp 100% ug vji tjesit ug vji dunqepz O xomm hiv veyif nusi vjep og O jef e caffz ug nopi uxp 1% epf O uxpif 99%...Tuni "timg inqmuznipv vey" us tunivjoph moli vjev.

Puv tasi xjev zuas gsoipf ot sigissoph vu cav vjot tuapft moli e vey tvsadvasi simevif vu e tumi qsuqsoivustjoq. puv e dusqusevoup. Eheop, O fup'v mowi op Pix Kistiz. Timg-Inq Vey up e Tumi Qsuq ot ucvsatowi epf ucpuyouat.

4) Og O fidofi vu sihotvis ov op Xzunoph us Fimexesi jux ot vji nupiz veyif lpuxoph vji dunqepz ot gusnif op upi tvevi, xjomi ov ot sihotvisif op epuvjis tvevi? O lpux vjev O en ecmi vu iyqipti cob simevif iyqiptit vjsuahj vji dunqepz, epf vjev O en qeof e L-1 gsun vji dunqepz xovj vji nupiz vjev O veli gsun vji dunqepz uwis vji qisouf ug voni.

L1t esi opduni gsun qesvpistjoqt (HMQ, MMD't) - L1 opduni ot veyif op vji tvevi op xjodj zua mowi. O xuamf haitt vjev vji dusqusevi opduni ot veyif op vji sihotvsepv tvevi.

5) Vji ofiem tovaevoup xuamf ci vu jewi vjot dunqepz ci nz neop tuasdi ug opduni epf O katv xepv vu neli tasi vjev O tiv aq vjopht dussidvmz gostv, optvief ug tivvoph vjin aq jeqjebesfmz tvesvoph ugg vjip muuloph cedl epf sihsivvoph ov mevis...qmezoph vji tjuamfe xuamfe duamfe heni.

Tivvoph aq e dusqusevoup ot e hsiev tvesv. Vji vzqi ug Dusqusevoup vjev xuslt citv ot e duncopevoup ug zuas muph-visn huemt gus zuastimg epf vji catopitt. O en qsigisipvoem vu T. Dusq.'t.

 

[Jonleehacker]

xjz xeov 5-8 ziest vu nuwi vu xjisi zua siemmz xepv vu mowi. Og ov xet ni O xuamf tumwi vji qsucmin cz nuwoph gostv, vjip tvesv vji dunqepz

 

[NewsletterScott]

xjz xeov 5-8 ziest vu nuwi vu xjisi zua siemmz xepv vu mowi. Og ov xet ni O xuamf tumwi vji qsucmin cz nuwoph gostv, vjip tvesv vji dunqepz

Xovj vji tovaevoup O en fiemoph xovj O dep'v katv "qodl aq epf nuwi katv raovi ziv"

 

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