Forum

Llc
 

Is there a cheaper alternative to legal zoom? LLC in ca is $493 with legal zoom

Re: Llc
 

File it yourself. It is super simple. I filed two Corporations 2 weeks ago and already have the paper work back. Go here for LLC - http://www.sos.ca.gov/business/llc/forms/llc-1.pdf It cost $70.00

You probably need to file other paper work later (like you do with a Corporation), but the actual articles you can file and be on your way. If your in LA or Sacramento you can drop them off at the Sec. Of States office for faster filing. If not, you mail them in. Hope that helps.

Re: Llc
 

Be ready to pay your annual 800 dollar tax.

Re: Llc
 

Search other state alternatives. NV and WY are common options.

Re: Llc
 

Yup, register in another state. Easy peazy.

Re: Llc
 

You can register in another state even though you don't live there?

Re: Llc
 

Yup, just have to get an address there. There are companies specifically setup for the purpose of opening businesses in other states. One major one is in Delaware, I think, where a tiny house has THOUSANDS of business registered at that address and some of them trace back to BIG corporations.

You will still pay tax in your state on your personal income but depending how the business is setup you might pay taxes to the state it is registered in if the money stays in the business.

Just Google search for "Delaware LLC" you will find it all. I say Delaware because it seems to be popular for this. So is Nevada and Wyoming I think.

I don't have a need for it yet so I don't do this but I can certainly see how it would be helpful. It's cheap too.

Check this out: Why Incorporate in Delaware or Nevada?

Re: Llc
 

This only applies to online business correct?

Re: Llc
 

California: A $20 reporting fee and a statement of information are required 90 days after formation and then every two years. An annual $800 LLC tax is due 75 days after formation and every year thereafter. There is a minimum annual fee of $865 if the LLC's net income exceeds $250,000.

Question: so $800 yearly and another $865 only if net exceeds $250k correct?

Re: Llc
 

No, not at all. Big companies like Microsoft, Google and many others do stuff like this too. You can do B&M stores in CA and register in another state.

You will then just need to file a foreign qualification in the state you will ACTUALLY be conducting business in and having employees in. Which is normally cheap.

Re: Llc
 

It sounds like it is just $65 more if your business is that big but I dont know CA law that well. It appears that foreign qualification of a business in CA is only $100. So maybe look into registering in Delaware for $100 or less and then file the foreign qualification in CA for another $100.

Maybe there are more fees Im missing as I have not looked into it very far but this seems the way to go from what I see so far.

Re: Llc
 

Check this out: California Certificate of Authority - Foreign California Corporation OR this: California Certificate of Authority - Foreign California Corporation

Re: Llc
 

Sorry, the second link is this one: California Corporation Foreign Qualification, How to Form a California Foreign Corporation

This seems to be the cheap route for opening a business in CA. You will still pay A tax on income derived from there BUT you should not have the $800 yearly fee. Also if you structure properly you may be able to flow your corporate income through Delaware tax free until you pay it out as a dividend to yourself then pay tax on it on your state income tax form for CA. That's what it appears like but you will want to check with a tax CPA in CA about that.

Re: Llc
 

You need to do some research and find an accountant that is familiar with this.

WY and NV accountants deal with this every single day with CA residents. Delaware as well.