Re:Inc. or LLC?
by zach on Friday August 10, 2007 @06:39PM
(#41364)
An LLC has shares just like any other corporation. You just keep giving shares to those who stay on and don't give them to those who don't. Stock options are another matter.
The primary point of incorporating in Delaware is for the outstanding legal and administrative structures they have for corporations. Not everyone is incorporated in Delaware -- Apple has always been a California corporation. But better to do it now rather than have to later.
In any state, the tax burden for a foreign corporation (one incorporated in another state) is going to be about the same as one incorporated in that state. That's because states have complete control over taxing revenue earned in their state, regardless of where entities are incorporated.
Nevada is business friendly, but since the state has no income tax, it also has a stigma of being quite popular with tax cheats. So it may increase the chance of an audit.
Re:Inc. or LLC?
by rms on Friday August 10, 2007 @08:57PM
(#41403)
In PA, an LLC can have shares but only if you write the legal framework yourself. By default, a PA LLC has membership interests, which are defined as a certain percentage of the company.
The primary point of incorporating in Delaware is for the outstanding legal and administrative structures they have for corporations. Not everyone is incorporated in Delaware -- Apple has always been a California corporation. But better to do it now rather than have to later.
In any state, the tax burden for a foreign corporation (one incorporated in another state) is going to be about the same as one incorporated in that state. That's because states have complete control over taxing revenue earned in their state, regardless of where entities are incorporated.
Nevada is business friendly, but since the state has no income tax, it also has a stigma of being quite popular with tax cheats. So it may increase the chance of an audit.