Dick Adams wrote:
- quote -

But to catch the Salmon I think you need sharp long teeth
and quick reflexes.

Will membership in the Canarsie Indian tribe qualify for
formation of an native american corporation?

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247 EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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"Jim Goldbloom" <jim[at]goldbloom_dot_.net> wrote:

- quote -

Wow, are you in for a surprise!!

The general rule for multi-state scenarios is that you get
taxed where you live. The exceptions to that rule are (1)
you get taxed where where you work or (2) you get taxed by
both States. In your case, your income will be taxed by
Virginia and you will have to pay business fees to Delaware.

Also I have no idea as to the "veil of secrecy" to which you
refer. Secrecy from whom? Governmental taxing authorities
share information.

While Virginia and Delaware are both nice places to live and
work, this Summer many of us on misc.taxes.moderated are
promoting Alaska as a great place for new business ventures.
No State income tax and they pay you for living there!!
Plus gas and fuel oil prices should be lower, salmon should
be relatively inexpensive, and your in-laws will be less
likely to visit.

Dick

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Jim Goldbloom <jim[at]goldbloom_dot_.net> wrote:

- quote -

False. You have nexus with Virginia. You live there, keep
your records there, and have a server there. Virginia gets
to tax you.

All you gain by registering in Delaware is the right to pay
additional fees to Delaware and the satisfaction of the
extra work needed to maintain a foreign entity in Virginia.

--
Chris Green

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Jim Goldbloom wrote:

- quote -

Sorry--*YOU* have nexus in Virginia and *YOU* are going to
be taxed on the business income no matter where earned. The
LLC, absent an election to be treated as a corporation, is
an ignored entity for federal tax purposes (meaning we look
to you) and, as far as I recall, Virginia respects that
federal rule.

If the business elects to be treated as a corporation then
it does have an employee (even if an uncompensated one
<grin> ) in you. So that would give it Virginia nexus. It
also has a location in Virginia where you conduct the
business (you are going to be sitting somewhere when
uploading things to the web server).

Even better, given the work you are doing to try and make
this a Delaware corporation, that state should get a whack
at imposing various fees and taxes.

I would strongly suggest you seek *both* competent legal and
tax advice prior to going forward with this plan.

--
Ed Zollars, CPA
Phoenix, Arizona

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Jim Goldbloom wrote:

- quote -

If you provide significant services to your LLC in Virginia,
I fear that that state will find your LLC is subject to
Virginia taxes and laws. You will have to register your
Delaware LLC with the Virginia SCC. I suggest you speak
with a Virginia lawyer before you go off half coked.

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247 EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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"Jim Goldbloom" <jim[at]goldbloom_dot_.net> wrote

- quote -

Yes. You ~do~ have nexus. In the Commonwealth of Virginia.

- quote -

Not true. You have Virginia income, earned in Virginia,
taxed in Virginia.

--
Paul A. Thomas, CPA
Athens, Georgia
taxman[at]negia.net

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"Jim Goldbloom" <jim[at]goldbloom_dot_.net> wrote:

- quote -

Aside from the fact that VA WILL tax the income to you on a
residency basis would be if the LLC elected to treated as a
c-corp?

--
David M. Woods, EA
Boston, MA 02109

Postings here are general information only and not to be
relied upon as advice.

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I need advice, help appreciated from anyone...

I am web developer/independant software vendor who wishes to
start a small home based business writing. I live in
Virginia but wish to setup an LLC in Delaware (why is
explained below).

After doing some basic research, it "seems" I don't even
have to qualify my business with Virginia, a state that
apparently does not rob me blind via a state tax so long as
2 conditions are true for my type of business:

1) My business has no nexus - I have 0 employees (just me),
a 3rd party web server, I am a small presence and I don't
do shows or conventions.
2) I will ONLY distribute my software via downloads

QUESTIONS:
Is that info up to date or false (or simply mired in
controversy)? Any other taxes to be concerned about from
Virginia for my business type?

My objective is to live/work in Virginia, but all business
dealings, all banking (and thus 100% of my personal income)
will reside in Delaware. Delaware has an excellent Chancery
Court system for business, and I also have a veil of secrecy
I can maintain there as an LLC. All reasons I want to set
it up in the manner I described.

Yes, I am going to contact an accountant or tax advisor
soon, but any feedback to help me frame my questions to such
an expert later would be tremendously appreciated now.

Feedback appreciated.

Feel free to email me at "jim at goldbloom dot net"

Thanks so much... :-)

-jim

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