CREATIVES AND LLC’S

Are you considering turning your creative venture into a limited liability company (LLC) and wonder in which of the 50 states you should make it official? Should you select Delaware? Afterall, many major corporations you’ve interacted with are incorporated in Delaware. What about your home state? Or Wyoming? Google lists Wyoming as the top state to incorporate in. What about California or Washington D.C?

Don’t leave the faith of your creative venture and the implications/consequences of selecting the wrong place of incorporporation to google and your interactions with major corporations. But if you do, at least consider the following:

An LLC is a creation of state statute that the IRS will recognize.

• A single member usually will be “disregarded as separate from its owner.”
• If you have at least one partner, your entity will be recognized as a partnership by the IRS.
• No matter your default entity type, you can file a form to designate your LLC as a corporation using the IRS Form 8832

In most states, when you register your LLC, you will get the following:

• Liability against lawsuits in the personal capacity for owners.
• Filing requirements that are not difficult to meet
• You do not have to physically be in the state if you appoint a registered agent.

Each state has their own LLC laws that are unique and dictate issues such liability, privacy, and taxes.

California

• There is a minimum $800 Franchise tax for all LLCs
• Members will pay high self-employment taxes
• Contact us to learn more about California Codes and Regulation as it relates to your creative venture.

District of Columbia

• Requires a Biennial Report and $100 fine for failure to file in a timely manner.
• Must file additional forms is elect to be treated as an S-Corporation.
• Contact us to learn more about D.C. Codes and Regulation relating to your creative business venture.

Delawar

• There is a special court assigned to hear business cases and the judges are experts focused exclusively on business-related matters.
• No personal income tax for non-residents of Delaware.
• Officers’ names need not be shared with the Division of Corporations.
• The “Business Judgment Rule” is given great weight .
• We can get you registered in Delaware; Contact us

Wyoming

• State’s annual filing fees for LLCs are minimal and there are no taxes on corporate income.
• All officers, directors, employees, and agents are indemnified by state statute.
• Owners’ and officers’ names do not need to be reported.
• Another state that respects the “Business Judgment Rule.”
• We can get you registered without revealing your identity to the state, provide you with a Wyoming address, and a Wyoming lease for your bank. Contact us

Your Home State

• Your Home State
• Contact SoCal and the District and we will provide a custom analysis for your state and business.

Questions about Forming an LLC? Contact SoCal and The District Law Group.

If you are starting a business and would like help choosing the best jurisdiction to form your LLC, we encourage you to contact us for a confidential consultation. To schedule an appointment at SoCal and the District Law, call (213) 924-4191 or inquire online today.

This blog post is written for educational and general information purposes only, and does not constitute specific legal or financial advice. You understand that there is no attorney-client relationship between you and the blog publisher. This blog should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.