Paul Gelinas <ynos...[at]comcast.net> wrote:

- quote -

All business organizations, including corporations,
partnerships, LLC (single or multiple member), and sole
proprietorships are subject to the New Hampshire BPT and the
BET. However, the tax applies only to income from NH
activity.

- quote -

No, incorporation in Wyoming (or Nevada, etc.) would not
save you any state business taxes. State income and
franchise taxes are imposed by the states where the entity
does business, not necessarily where it is organized. If it
does business in NH, it will be subject to the BPT and BET.

You should also be aware that you, as the single owner of
this LLC, will be subject to individual income taxes in most
states where the LLC owns property or does business. In
general, you will report and pay tax on the LLC's income
from sources (property, in your case) in each state on a
nonresident individual income tax return. This will be true
in all states except for those that do not impose
comprehensive individual income taxes (Nevada, Wyoming,
South Dakota, Washington, Florida, Texas, Alaska, Tennessee,
and, of course, New Hampshire). Some states (e.g., Texas)
will tax the LLC as if it were a corporation. Some other
states will impose an entity-level tax or fee on the LLC
itself in addition to individual income tax on you as the
owner (e.g, California).

- quote -

No, you would not have to register the LLC in any state
until it acquires property or otherwise does business in
that state. Then it would have to be registered.

Katie in San Diego

<< ------------------------------------------------------- > << 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 posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

I am a New Hampshire resident looking to form a company for
the purpose of investing in real estate, primarily via the
Internet, as I am legally blind and travel is difficult.

I have decided on an LLC for the legal and financial
protection it affords me, but I am unsure of the tax
consequences.

As a pass-through entity with onlu one member, income taxes
seem straightforward at the federal level, but I seem to be
getting conflicting information about state business taxes.

NH has both a business enterprise tax and a business profits
tax. Do these aply to an LLC such as mine? It would seem
that they would apply only if I elected taxation as a
corporation, but it isn' defined that clearly.

Also, I read somewhere that incorporating in the state of
Wyoming would allow me to avoid the NH business taxes, since
WY has none, and a single member LLC is not considered to
have an 'wmployee', so would only have to file federal
income taxes + Schedules C & SE.

Lastly, and I know it's more of a legal question, would I
have to register the LLC in all states I wished to do
business, even if I never take physical ownership of any
property in those states?

Thanks in advance for any advice or pointers.

Paul

<< ------------------------------------------------------- > << 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 posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >