MyLLC
MyLLC
Login
888.88.MYLLC
Contact Us
Login
888.88.MYLLC
E-mail
  • Home
  • Starting a Company
    • Price List
    • Form a LLC
    • Form a Corporation
    • Registered Agent Service
    • Free Corporate Name Check
    • More Services
      • Certificate of Good Standing
      • Corporate Record Kits & Seals
      • Trademark Service
      • File a DBA
      • Apply for US copyright
  • Managing a Company
    • Federal Tax Id (EIN)
    • Dissolution Service
    • Foreign Qualification
  • More Services
    • Name Amendment
    • Share Amendment
    • Other Amendment
    • Certified Copy
    • Apostille
  • Help
    • Starting Your Business
    • Managing Your Business
    • Tips For Success
  • Why MyLLC
    • About MyLLC.com
    • Hours and Holidays
    • Press Releases
    • Partners
    • Become an Affiliate!
  • Search
  •     1.888.88.MYLLC
  • Home
  • Price List
  • Form a LLC
  • Form a Corporation
  • Get a Registered Agent
  • Free Corporate Name Search
  • Get a DBA
  • Other Services
  • Free Forms Library
  • About MyLLC
  • Contact Us
  • Help Center
  1. Home
  2. Help Center
  3. Starting Your Biz
  4. Pass-Through Taxation and LLCs

Pass-Through Taxation and LLCs

Jennifer Reuting: Author

By Jennifer Reuting, author of Limited Liability Companies for Dummies™

Question:

In your book (Limited Liability Companies for Dummies) you talk about the advantage of forming your LLC, if you're an internet based business, in another state such as Nevada due to the "no personal income". I'm slightly confused about how this exactly works. As far as I understand it, LLCs are taxed as pass-through so any e-taxable profits are assigned to the owners as personal income. So if I live in Virginia but my LLC is formed in Nevada, how would this exactly work? Wouldn't the earnings from the LLC get passed through to me, living in VA, and then I have to pay the taxes in VA? If so, how exactly would the no taxes in Nevada help me save some money? Thank you for your time. I know it's kind of a long question but, as I'm sure you know, trying to figure out and decide what business to form, and where, is kind of nerve racking. Your book has been a great help, I'm just confused by this one point.

Answer:

Great question! You are right that the profits would pass on to you and you would end up paying Virginia taxes anyway... unless you have elected corporate taxation. Your LLC is not required to have pass-through taxation and by electing corporate taxation, you are allowed to keep your profits in the LLC. The profits you keep in the LLC will be taxed at the federal corporate tax rate. In addition, you will also be required to pay state taxes. However, by forming your LLC in a tax-free state (such as Nevada), you can eliminate any possibility of state taxes being assessed on the profits you keep in your company.

I hope this answers your question... If you need help in forming your LLC or electing a tax status, please don't hesitate to contact me or my associates at MyLLC.com!

Order Limited Liability Company

* If you have difficulties using the order form on your smartphone, try turning your phone sideways for a wider display.

Need Advice? Ask us Anything!

*Information required. Your personal information is only used to contact you. MyLLC will never sell or share your information.

Disclaimer: This information is made available by MyLLC.com, Inc. (the "Company"), and is intended for educational purposes only, and it is not legal or tax advice. No action should be taken in reliance on any information in or on this site without verification with legal or tax counsel, after review of the facts and current law, that the action to be taken is appropriate under the circumstance. Except as expressly provided to the contrary in writing by the Company, the materials contained on this site are provided on an "as-is" basis without warranties of any kind, either express or implied. Company disclaims all other warranties, express or implied, including, without limitation, implied warranties of merchantability, fitness for a particular purpose, title and non-infringement as to the information, content and materials on and in the site. Company does not represent or warrant that materials on and in the site are accurate, complete, reliable, current or error-free.
STARTING A COMPANY

Form a LLC
Form a Corporation
Registred Agent Service
Free Corporate Name Check
Certificate of Good Standing
DBA (Doing Business As)

FILING SERVICES

Foreign Qualification
Dissolution Service
Name Amendment Filing
Share Amendment
Other Amendment
Applying for a US Copyright
Federal Tax ID (EIN)

WHY MYLLC?

About MyLLC.com
Partners

MyLLC.com
1910 Thomes Ave.
Cheyenne, WY
Tel: 888-886-9552
info@myllc.com

facebook twitter linkedin
McAfee SECURE sites help keep you safe from identity theft, credit card fraud, spyware, spam, viruses and online scams
MyLLC.com, Inc. BBB Business Review
credit cards accepted
  • Sitemap
  • •
  • Press Releases
  • •
  • Terms & Conditions
  • •
  • Privacy Policy

Copyright © 2006 MyLLC.com® is a trademark of MyLLC.com, Inc.
All rights reserved

Login

Email Address:
Password:

New Account
Forgot Password


LOGIN
Nevada's Tax Laws have changed
Effective July 1st, 2015:
Be aware that if you are currently incorporated in the state of Nevada, or are considering becoming incorporated in Nevada, 2015 changes to the tax laws may directly affect and increase the costs to your business!

What is your first step? Simply choose which of the following two options applies to your business:

ALREADY INCORPORATED in the state of Nevada? 2015/08/15 - Your annual fees increased from $325 to $650, and that’s not including the Commerce Tax if it applies to your business! Further, you will now be required to file your tax return with the NV Department of Taxation with June 30th as the fiscal year, not the calendar year! Review these changes with your tax advisor immediately! If you choose to re-domicile your corporation in another state, MyLLC will file the re-domestication paperwork for you!

TRYING TO DECIDE WHICH STATE is best to incorporate your new business? MyLLC strives to provide you with up-to-date information and exceptional customer service. Contact your tax advisor to review your options and then talk to MyLLC's Incorporation Professionals to assist you in filing your articles of incorporation as well as provide you with Registered Agent services!

MyLLC is committed to assisting you in this process but you must contact us today!

Call us toll free at 888.88.MYLLC or fill out the contact form so one of our experts can help you.
Choose Order Type
Entity Formation Incorporation or Non-Profit
Limited Liability Company
Limited Liability Partnership
Limited Partnership
Foreign Qualification
Dissolution

Registered Agent Service
Trademark
Copyright

EIN
Corporate Kit

Filings Name Amendment
Business Purpose Amendment
Articles Amendment
Shares Amendment
Certificate of Good Standing
Nevada Annual List
Delaware Annual Report
Apostille