In the end California will want income taxes on your personal
income that you get from this venture.

--
f

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

I want to setup a single-member New Mexico LLC for a website
whose revenue is generated through banner advertising (the
site would be hosted in NM). The business listing on the NM
business website for all LLCs in New Mexico would point to a
foreign out of country mailing address.

My main concerns are the "nexus" issues for a California
resident.

My questions are:

* Can I do this with out having to pay the California Franchise
Board or any tax to California? Even though I don't even
have a office in California and all revenue would be
generated from New Mexico (due to site being hosted there),
I am worried about the "nexus" issues with California and
being a resident there. (Ridiculous if you ask me).

* I remember seeing a old post (from 2000) from TaxMama -
saying legally you could setup two LLCs in New Mexico (two
entities - but the same person) and form a General
Partnership in California and not have to pay the insanely
high FTB $800 tax, and California Sales Tax. Can this
still be done without giving too much info on the owner of
the LLCs?

* Also... if someone tried to me over my site's content (it's
everything - EXCEPT pornographic - it's mainly humor) - even
though being a California resident - the New Mexico LLC
would protect my assets, correct?

* Is a site that only gets revenue through online ads and
donations even taxed by California? (its not tangible)

The revenue for this site would be generated from:

* Affiliate Banner Ads (from cj.com, etc) - each click a
person made - would generate me money
* Banner ads people paid her to host
* Donations through Papal
* And t-shirt sales through a affiliate program

To deal with the California "nexus" issues:

* All mail, tax forms, etc - would go to a New Mexico mail
forwarding address to her friends house in California
* A New Mexico phone #
* A bank account in New Mexico
* the website would be hosted in New Mexico

This isn't to avoid paying taxes - all federal taxes and
taxes and dues to New Mexico will be paid. California is
against small businesses and extremely unjust in its tax
collections in my opinion, and forming a LLC in California
isn't an option since its too easy to "pierce the corporate
veil" there. (so the LLC is worthless)

Any advice would help (besides "don't do it" ;-))

Thanks
BD
mailto:madtv121[at]yahoo.com

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >