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Hello and thank you for using Just Answer,The advantage would certainly be that Nevada does not tax and the liability for you would not be personal. The draw back is going to be that the income is still going to be taxable to you in California. There is no tax to the LLC on LLC income. All profits or losses pass through and are taxed to the members (you and your husband). An LLC passes the tax through to the members. So, if the member(s) are in California, that is where you pay state taxes, you still pay state taxes on the profits that are passed through the LLC.
Of course Nevada has no corporate income tax, no personal income tax, no franchise tax, no unitary tax, no inventory tax, no inheritance tax and no estate tax, as well as competitive sales and property tax rates.
What are the tax benefits to people setting up corp.in no- tax states, why do they do it?
What are the benefits to setting up corp. in non tax states, why dothey do it
Most of the time it is because the state has no tax and the privacy. The members are not made public.
What about writing off expenses against the business, and do travel expenses, etc qualify
Not tarvel unless it is directly in the course of the business (travel would need to be an ordinary course of the business) but regular business expenses would be allowed, yes,.
Not travel* sorry for the typo
Most I have spoken with choose Nevada because Nevada LLCs do not require a list of stockholder names to be filed with the state. That means that investors can remain anonymous.
What about health care insurance, salaries, etc if we employ family members to do the property management, etc
The salaries of course are deductible, the health insurance, like any business depends on the structure.
The fact that it is in another state does not stop the regular business expenses.
When you are self-employed, you may be eligible to deduct premiums that you pay for medical, dental and qualifying long-term care insurance coverage for yourself, your spouse and your dependents.
sorry I have to catch a plane to Hanoi, be back on-line later,thank you
I hope I have answered your initial question.
I really enjoyed working with you – please feel free to request me again when you come back to ask another question.
Your positive rating is always thanks enough.