Welcome Guest. Register Now!  


Multistate Tax Issues Multiple state Tax Issues


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 06-28-2009, 07:07 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,397
Blog Entries: 3
Is establishing an Entity out of state advantageous from a Tax Standpoint view?

A lot of people think that "establishing an out of state corporation or an LLC will actually save them Corporation or Individual Taxes". Well, unless that Corporation is operating a large business, most small and mid-size companies are better off establishing their business in the state that they plan to do business in.

This ensures that that the taxpayer would not have to shoulder the burden of additional reporting requirements, administrative provisions, state filing fees, accounting fees, and legal fees that are normally associated with an out of state incorporation.

Taxpayers would be disappointed to learn that there may little or no tax benefits as they may have been led to believe.Hence, I would suggest that taxpayers should consult with both their attorney and their CPA prior to deciding whether or not establishing a corporation or a company in a different state.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
LLC taxed as C corp convert to disregarded entity Nathaniel Limited Liability Company 1 09-21-2008 03:26 PM
From the IRS point of view, what would cause my 2 member partnership to terminate? katlee Limited Liability Company 0 07-30-2008 11:45 PM
Why are Limiited Liability the preferred form of Business Entity? Amir Limited Liability Company 1 04-03-2007 04:06 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning