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I sell on eBay worldwide...from North Carolina...I plan to net approximately $15,000 profit or more. Would it be better for me to set up a single-member LLC in Wyoming? How would I go about paying taxes?....regarding state taxes in NC...would I need to register the business in NC as well? And I assume no need to pay self employment tax? My personal tax liablility would be that which I pay myself out of the LLC right? How is the LLC taxed? Do I need to do quarterly estimated taxes? I don't think North Carolina allows single-member LLC...and perhaps the best location is Wyoming since I do not have a brick and mortar....Your advice is kindly appreciated. | | 
Great question! Unless you elect “corporate” taxation for your LLC, you will be stuck with a pass-through taxation where all of the profits and losses flow through to your personal tax return. In the case of pass-through taxation, you will not gain any state tax benefits from an LLC – after all, your profits will just flow to your personal tax return and, along with your other income, you will be required to pay NC state taxes.
The only way to truly derive tax haven benefits with an LLC is to elect “corporate taxation”. This will keep all of your business income in the state in which your company is formed (in your case, Wyoming). Just keep in mind that electing corporate taxation has some drawbacks, including double-taxation of profits. I advise you to seek out more information about this sort of taxation by either reading the book or speaking with your tax advisor.
Best of luck! | | |
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