Opening new company, Delaware or California?

[genoveze]

Hey guys, I am opening a new LLC and I want to choose Delaware or California,
for a fans site.

Any advantages disadvantages for each?

I am asking the well trusted community for their opinions!

And THANKS

[nikki99]

California

[genoveze]

Cool but what is your experience, what are the advantages, vs disadvantages?

Thanks

[Mr Pheer]

Yeah do California so you can pay more taxes and not have as much privacy. That's what I would do.

[genoveze]

Originally Posted by Mr Pheer

Yeah do California so you can pay more taxes and not have as much privacy. That's what I would do.

Thanks mate!

[xocrea]

AI

Both Delaware and California are popular choices for incorporating a company, but each state has its own advantages and disadvantages.

Delaware is known for its business-friendly laws and strong corporate legal system, making it a popular choice for incorporation among large corporations. However, it may not be the best choice for companies that do physical business or have operations in the state, as they may still be subject to taxes in their home state.

California, on the other hand, is the largest economy in the US and has a large market, making it attractive for companies that want to do business in the state. However, it also has a higher cost of living and doing business compared to other states, as well as more regulations and taxes.

Ultimately, the best choice depends on the specific needs and circumstances of your company, including your industry, business model, and target market. It is recommended to consult with a business attorney or accountant to determine which state is the best fit for your company.

[genoveze]

Hehe you like chat cpt

I wanted a personal experience of someone
but thanks

[pornlaw]

First, ask your accountant, second your lawyer. Where you set up your entity has more to do with taxes than anything else.

Also, usually you set up in the state where you do business. Otherwise you will be required by your state's tax authorities to register as a foreign corporation doing business in that state. If you dont do this you may face fines and penalties for back taxes as well as the fact you will not be able to use the courts of your state to even defend a lawsuit.

Which makes you a huge target for any lawyer that understands this. For example you set up in Delaware and you dont pay taxes in your home state. You get sued in your home state and before you can even defend the lawsuit you have to go back and pay 5 yrs of back taxes + interests and penalties. And you dont get more time to answer the lawsuit. So by the time you take care of your tax issues, the lawyer has gotten a default judgment against your company and you personally and is now moving to take to your assets.

Also be aware in California your personal information will be available on the CA Secretary of State's website. You will not be anonymous.

Good luck.

[genoveze]

Thanks Michael, I appreciate your answer,
I will look for a good lawyer to give me advice
California has like 8% on income tax plus more

everyone says Delaware is good for tech startups, trying to figure out why

Cheers

Originally Posted by pornlaw

First, ask your accountant, second your lawyer. Where you set up your entity has more to do with taxes than anything else.

Also, usually you set up in the state where you do business. Otherwise you will be required by your state's tax authorities to register as a foreign corporation doing business in that state. If you dont do this you may face fines and penalties for back taxes as well as the fact you will not be able to use the courts of your state to even defend a lawsuit.

Which makes you a huge target for any lawyer that understands this. For example you set up in Delaware and you dont pay taxes in your home state. You get sued in your home state and before you can even defend the lawsuit you have to go back and pay 5 yrs of back taxes + interests and penalties. And you dont get more time to answer the lawsuit. So by the time you take care of your tax issues, the lawyer has gotten a default judgment against your company and you personally and is now moving to take to your assets.

Also be aware in California your personal information will be available on the CA Secretary of State's website. You will not be anonymous.

Good luck.

[Klen]

Originally Posted by genoveze

Thanks Michael, I appreciate your answer,
I will look for a good lawyer to give me advice
California has like 8% on income tax plus more

everyone says Delaware is good for tech startups, trying to figure out why

Cheers

Maybe because of 0% state tax ?

[genoveze]

Yes state tax 0, vs 8%, but I think its 0 for both for outside state business, not sure

[Klen]

Originally Posted by genoveze

Yes state tax 0, vs 8%, but I think its 0 for both for outside state business, not sure

Found this article which give details about it:
https://www.sambrotman.com/personal-...rnia-state-tax

[genoveze]

Thanks Klen, reading now
whats your bussiness btw?