How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Roger Your Own Question

Roger
Roger, Attorney
Category: Business Law
Satisfied Customers: 26576
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by West
6704987
Type Your Business Law Question Here...
Roger is online now
A new question is answered every 9 seconds

Legality of setting a Nevada/Delaware corporation

Resolved Question:

Legality of setting a Nevada/Delaware corporation

Hi, I'm curious about the legality of setting up a Nevada or Delaware corporation in Washington state.

I'm located in WA. The business I'm setting up is virtual, and only does business online. It(or I?) would be renting one physical location in WA to host servers.  It does not ship out anything or have a storefront.

The business isn't legally set up yet. I've discovered that there are numerous benefits to my business being a Nevada or Delaware corporation.


 


What are the legal implications of setting it up as a Nevada/Delaware LLC in this situation?


 


What are the (state) tax implications for WA?

Submitted: 1 year ago.
Category: Business Law
Expert:  Roger replied 1 year ago.

Kirk Adams :

Hi - my name is XXXXX XXXXX I'm a Business litigation attorney. Thanks for using JA! I'll be glad to help.

Kirk Adams :

There's nothing wrong or improper about forming an LLC in one state and having it headquartered in another. It actually is fairly common.

Kirk Adams :

The only real issue would be that you'd have to register in Washington State as a foreign entity, which requires additional fees to be assessed to the business by the Secretary of State.

Kirk Adams :

If all income is made in Washington State, then all tax returns, income taxes, sales tax, etc. should only be assessed through that state - - and not the state of incorporation.

Kirk Adams :

You would also have to have a registered agent for process in the state of incorporation, which could be a corporation set up to do such a thing. These types of companies exist in every state and serve as the registered agent for service of process for the company that is headquartered elsewhere.

Customer:

> If all income is made in Washington State,

This depends on how you define 'income is made', I think. Is there a legal definition for that concept that I could review that would apply in WA?

The income isn't technically made anywhere, depending on how THAT is defined. The 'income' is either in Bitcoins, which have no real value legally(nor do they exist), or it is in dollars when those are sold(Exclusively in other states or even countries, then transferred in).

I'm guessing since the exchange of Bitcoins to dollars happens elsewhere, and the Bitcoins don't exist anywhere, then it is reasonable to call that out of state?

(Very difficult legal question, I know).

Kirk Adams : If the income is received in Washington State and paid out there, it would likely be considered income earned there. However, I would certainly defer to a CPA on something like that. '
Kirk Adams : However, there's no problem with having an LLC incorporated in one state and being headquartered in another.
Roger, Attorney
Category: Business Law
Satisfied Customers: 26576
Experience: BV Rated by Martindale-Hubbell; SuperLawyer rating by West
Roger and 3 other Business Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • Law Pro

    Attorney

    Satisfied Customers:

    1426
    20 years experience in business law - sole proprietor, partnership, and corporations
< Last | Next >
  • http://ww2.justanswer.com/uploads/LA/lawpro/2012-6-25_171315_PT206740s.64x64.jpg Law Pro's Avatar

    Law Pro

    Attorney

    Satisfied Customers:

    1426
    20 years experience in business law - sole proprietor, partnership, and corporations
  • http://ww2.justanswer.com/uploads/DC/DCraneEsq/2012-8-14_14436_DCrane.64x64.jpg MShore Law's Avatar

    MShore Law

    Attorney

    Satisfied Customers:

    1233
    Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    1162
    25 years of experience helping people like you.
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    1142
    Run my own successful business/contract law practice.
  • http://ww2.justanswer.com/uploads/ohioatty/2009-1-22_185545_me.jpg J.Hazelbaker's Avatar

    J.Hazelbaker

    Attorney

    Satisfied Customers:

    393
    Experienced and trained in the area of business law.
  • http://ww2.justanswer.com/uploads/scottymacesq/2009-6-10_221523_small.jpg RGMacEsq's Avatar

    RGMacEsq

    Attorney

    Satisfied Customers:

    393
    Licensed Texas General Practice Attorney
  • http://ww2.justanswer.com/uploads/BA/barristerinky/2012-6-10_22423_office.64x64.jpg Barrister's Avatar

    Barrister

    Attorney

    Satisfied Customers:

    301
    13 years practicing attorney, MBA