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.