<james.smith99[at]yahoo.com> wrote
- quote -


What you need to do is just operate your busines as a sole-proprietor. No
issues about reforming in another state if you move.

Now, where you physically do your business is where you'll owe tax to. So
if today you're in Topeka, you owe tax to Kansas. If tomorrow you're in De
Moines, you owe tax to Iowa. If the next day you are in Sun City, well,
you'd not owe tax to Florida because they don't have a state income tax.
Generally your home state taxes your global income, allowing a credit for
tax paid to another state. Corporate structures generally allocate their
net earnings to each state, the most common method is a factor comprised of
revenues, wages and equipment that is attached to each state.

Unless you want a tax preparation bill larger than your net profits, I
suggest not moving around every few days in some effort to skirt the state
income tax laws.

But regardless of where you are when you physically conduct business, it's
all taxaxble for federal purposes.

FTI: What state do you intend to carry your drivers license in? What state
will you be registered to vote? What is the most common address you will
use for medical, banking and other legal documents? That state will most
likely consider you to be a resident and your income subject to beign taxed.
So, right or wrong, if you're a resident of Illinois and you actually
conduct work in various states, Illinois taxes all your income, giving you a
tax credit based on the taxes you pay to the other states on that income.
Meaning you have to actually file in those other state (yes, they ask for
copies of those returns).





- quote -


See above. Unless you physically and permanently move out of the country,
you have a home state to which you will owe taxes. Today it's where you got
up this morning. If you pack up all that and move three states away, it'll
be the other state tomorrow. There is well established law about what
constitutes a tax home.

So, unless you are just asking to be curious, seek the professional advice
of a tax attorney about your plans to be nomadic in your business
operations.




--
Paul A. Thomas, CPA
Watkinsville, Georgia

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

On Sep 22, 10:25*pm, se...[at]panix.com (Seth) wrote:

- quote -

Thanks. That's succinct and to the point.

What if I move after I start the company? To minimize taxes, would I
then have to re-register the company in my new home state? To take
this a bit further, what if I am always moving? The concept of a home
state / location where business is done seems to me to be moot with an
internet business.

- quote -

Right. But since it's published over the internet, I could conceivably
be anywhere. I could even be outside the country (and thus, not in any
state). With an internet business, how does the law determine that I
am in a particular state for tax purposes?

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

On Sep 22, 6:59 pm, james.smit...[at]yahoo.com wrote:
- quote -

Put the cart before the horse. Walk before you run. If you are a one-
person operation, then there is no simpler and more effective way to
do business than as a sole proprietor. Just file schedule C with your
taxes and you are done. Why do you want to spend thousands of dollars
plus lots of non value added time forming some more complex entity for
a business that is a one-man show? As others have said, no legal mumbo
jumbo will insulate you from the responsibilities to your clients. I
suggest reading some of my business tips here to get you started:

http://www.mynonsense.net/science/ec...s/business.php

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

In article <4bb85757-1bc2-4289-9ca9-0d9f5506c890[at]i20g2000prf.googlegroups.com> ,
removeps-groups[at]yahoo.com <removeps-groups[at]yahoo.com> wrote:
- quote -

That's the case where it _isn't_ "physically located".

I own a server that's currently in Virginia (I'm in Minnesota). If I
were to engage in such a business using that server, would Virginia
claim I was doing business there?

- quote -

Physical actions are taken by the individual (and the company may also
have liability if he does it as part of his employment; this matters
when the company has more assets). Some logical actions (e.g. signing
a contract that says "Company X, signed by Person Y, President") are
taken by the company.

Seth

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

On Sep 22, 7:25 pm, se...[at]panix.com (Seth) wrote:
- quote -

No. I'd say the place where you do business is where you were working
when you wrote the newsletter, advice, etc. Where the site is
physically located is irrelevant. By physically located I mean where
the datacenter of the site is. That depends on which web hosting
company you choose. Besides, the web hosting company may change the
location of the web server from one city to another, or perhaps they
use load balancing and host your website on many servers throughout
the country.

- quote -

Where does one draw the line between an action taken by the individual
and an action taken by the company? I suppose the case of defamation
is clear-cut, but what about others?

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

<james.smith99[at]yahoo.com> wrote
<<<SNIP
- quote -



There are multiple implications to entity selection. May I suggest you
developing a relationship with a local CPA or EA who can guide you through
the process.

Your best bet is to form the corporation in the state in which you reside
and in which you plan to operate the business - meaning where is it you will
sit your self down and do the work of the business?

Also remember that you can not insulate yourself from your own actions.





<<<SNIP

- quote -


None. It all comes down to you doing the work in one location. That is the
extent of your tax nexus. Where your clients are is meaningless for tax
purposes. How you deliver the goods or services is meaningless for tax
purposes.



- quote -


That's right. Or other partners/owners of the entity.






- quote -



It doesn't. You'll have to pay taxes, register the company/business, and be
subject to the laws of the state in which you operate the business.





- quote -


You'll be taxed by the federal and state, and in some cases the county/city,
based on business profits. This is not impacted (for the most part) by how
much you "take out" of the business.





- quote -



And you're planning to give investment advice??????

No. Hell no. It's not legal. It's called fraud.




Find a local CPA or EA to give you lots and lots of advice, you seem to need
it. Be prepared to pay for that advice, at least up front.







--
Paul A. Thomas, CPA
Watkinsville, Georgia

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

In article <3b6ef5e0-c580-4b92-bd93-f46968287487[at]k13g2000hse.googlegroups.com> ,
<james.smith99[at]yahoo.com> wrote:

- quote -

You will pay the full taxes of your home state. You want to avoid
paying taxes to other states, so the entity should live in the same
state you do.

You might get some protection from a Subchapter S corporation. You
won't get very much.

- quote -

You do business where you publish the newsletter. (If you host it on
a web site, you might be doing business where the site is physically
located, if it's physically located.)

- quote -

You can't limit your liability for your own individual actions
(e.g. defamation).

- quote -

Except for a C corp, you are taxed when the entity earns the money,
not when you take it.

- quote -

No.

Seth

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

Greetings,

I am starting a company. The company will publish a financial
newsletter that will tell people what to invest in and how much to
invest. I will not be giving any individualized financial advice. I
expect it to be a one-person operation. Also, everything will be done
over the Internet.

My basic question is: Which business entity should I form? Which state
should I form it in? I would like to have limited liability and save
on taxes; and I'd like it to be easy to maintain the business entity.

I've read a lot about this, but I am still confused.
- Some people recommend forming an LLC in a corporate friendly and /
or tax-haven state.
- Some recommend against forming single-member LLC's, because they are
not recognized by the federal government and some states.
- Some say to form the company in the state in which I will be doing
most of my business. This is because if my company does business in a
state other than the one in which it was formed, I still have to
register it with that state. Since the newsletter will be provided
over the internet, what is the implication of this? Would I have to
register the company in every single state?
- Some say that an LLC will not limit my liability, since limited
liability only protects the owner of a business from the wrongdoings
of his employees.
- How does forming the company in a tax-haven state really help? As
soon as I take the money out of the company, I will be taxed by my
state. I've heard that some people who own single-member LLC's have
the LLC buy whatever they need. That way, the money is never
transferred from the company to them, and so is never taxed by the
state. Is this legal?
- According to the Small Business & Entrepreneurship Council, the most
business friendly states are South Dakota, Nevada, and Wyoming. Should
I form the business in one of those states? (I do not live in any of
them.)

Thanks.

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >