Re:Stripe Atlas for LLCs
by Saaster on Monday April 30, 2018 @01:53PM
(#16960723)
Unless you have presence in Delaware (offices or employees), you don't pay corporate income taxes there just because you formed as Delware LLC or C Corp. You pay a nominal franchise tax, and you're taxed in the other state(s) you operate in.
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Yep. An LLC* is not taxed as a corporation unless it chooses to be, by default it is taxed as a sole proprietorship (and so the owner would pay income tax). This is known as a disregarded entity” at the federal level.
Also watch out for franchise taxes - if you live in California it’s $800/yr minimum.
* Edit: a single-member LLC
Re:Stripe Atlas for LLCs
by gamblor956 on Monday April 30, 2018 @04:30PM
(#16961994)
The California franchise tax applies to California LLCs and to non-California LLCs that do business in California, so you don't avoid it by registering in Delaware.
Re:Stripe Atlas for LLCs
by nodesocket on Monday April 30, 2018 @02:15PM
(#16960896)
Pretty sure you can only be a "disregarded entity" (schedule-c) with a single member LLC. Beyond that is get's more complicated.
Yes, that’s right. Good point!
Re:Stripe Atlas for LLCs
by jkaplowitz on Monday April 30, 2018 @03:35PM
(#16961540)
You can choose to be taxed as a corporation even in that case, but it's usually not worth the tradeoffs.
How is an LLC taxed with foreign members? Is it tax exempt in the US and does the income accrue to the partners (i.e. foreign companies and/or people)?
I don’t know, for a single member I think the LLC might be required to pay the income tax itself in that case. You can be sure that the federal government will want its taxes.
For multiple members it will be taxed as a corporation.