Nevada LLC - Posted by William

Real Estate Investing
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Posted by Dave T on December 02, 1998 at 20:07:47:

Documents Relating to Foreign Corporations: Fee

Registration of Name for a calendar year: $50

Registration to do interstate or foreign business: NO FEE

Qualification to do intrastate business: $50

Certified Statement of amendment, merger,dissolution: $6

Application for termination of registration or qualifications: $6

Notice of Change of Principal Office: $10

Notice of Change of Name or Address or Resident Agent: $10

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Nevada LLC - Posted by William

Posted by William on December 01, 1998 at 19:12:31:

I want to put my rental properties in an LLC corp.

Would it make sense to do it in Nevada or the state where I live? Someone said that Delaware and Nevada Corps. were
beneficial only for the “large businesses” and also it may not be cost effective becuase there is a foreign state fee to do business in your state if corp. was formed in Nevada or Delaware. Any comments?

Thanks for your advice.

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Re: Nevada LLC - Posted by Bronchick

Posted by Bronchick on December 02, 1998 at 12:41:35:

An LLC is a “pass through” entity, so you will be taxed on the income of the LLC in the state in which you live. Thus, an LLC in NV makes no sense, and will cost you EXTRA, since you have to pay annual fees to the states of NV AND TX.

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Any advantages? - Posted by TL

Posted by TL on December 02, 1998 at 24:50:48:

What advantages are there to doing your RE investing from within the structure of a Corp.? (Obviously I am real new to the business.) Are there enormous amounts of liabilities that RE investors need to be careful of?

Thanks,
TL

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Pros and Cons of each strategy exist - Posted by raelynn mitchell

Posted by raelynn mitchell on December 01, 1998 at 22:19:32:

If you go with Nevada, yes you may have to “qualify” or “register” (read PAY MORE MONEY) in your state. However, advantage number one of Nevada is, they do not trade information with ANYONE, IRS included. Nightmare opposite case in point, California (49 better states to incorporate in than my home state) requires all officers and any shareholders (owners) who hold 10% or more of stock in the company to register with the state annually, reporting their HOME ADDRESS to the Secretary of State, thereby making this information available to anyone who wants to know. Nevada allows you to use your registered agent’s office address if he allows you to. In Nevada, you report who the officers are. But you are not required to reveal ownership.

Nevada also has no state income tax.

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Re: Nevada LLC - Posted by William

Posted by William on December 02, 1998 at 19:25:13:

Thank you all for the great info.

Thanks so much.

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Re: Any advantages? - Posted by Bud Branstetter

Posted by Bud Branstetter on December 02, 1998 at 12:04:53:

There are multiple advantages of operating as a corporation. More deductions. And that liability thing too. There is also a need to insulate your assets from attack by an asset protection plan.

In Texas it costs as much to register as a foreign corp. as it does to register initially. What many recommend is the in state corp first then the Nevada Corp owning the instate corp. Two are helpful if there is a high state income tax and profits can be shifted to Nevada.

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Re: Pros and Cons of each strategy exist - Posted by William

Posted by William on December 02, 1998 at 11:48:46:

I was looking to start a one man LLC corp.

So if I started in Nevada, I would pay no state tax to nevada but to maryland? and also a “foreign” fee to register in Maryland? The benefit would be that no one would know the owner? I know the fees to register in each state, but does anyone know the fee to reigister as “foreign” corp in maryland? Is it worth it???

Thanks for your advice.

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Re: Pros and Cons of each strategy exist - Posted by Brad Crouch

Posted by Brad Crouch on December 02, 1998 at 02:28:02:

Raelynn,

Assume for a second that you are a California resident who has formed a corporation in Nevada. Perhaps the Nevada corp was intended to function as the beneficiary of many land trusts in California that had been created over the course of a few years.

Now you make a decision to “register” the corp. in California as a “foreign” corporation. Are the requirements the same as a California corporation? Can the Nevada agent’s address be used, or do the Nevada rules no longer apply and home addresses have to be given of the officers? Also, only one person is required to run a Nevada corporation, California corporations still require two people. So would the State of California even consider such a Nevada Corporation to be “eligible” to become a “foreign” Corp.? Or would they allow this foreign registration, and allow the Nevada terms?

Any ideas?

Brad