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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4545
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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I live in Florida and I work online. I want to make a

Customer Question

I live in Florida and I work online. I want to make a Deleware LLC for privacy reasons, and they are asking for an address. I would like to use a site like virtualpostmail.com where they give you an address and scan your mail. They are located in California
so I would be using a CA address which is fine by Deleware. My question is is this OK with the state of florida that my business is registered in Deleware and the address is in California, and by that I mean in terms of paying my taxes at the end of the year...
I want to make sure I dont have to pay state tax on my business income, which is one of the main reasons I moved to Florida in the first place.
Submitted: 2 years ago.
Category: Finance
Expert:  Rakhi Vasavada replied 2 years ago.

Dear Friend,

Hello and welcome. Thank you for providing an opportunity to assist you.

Yes, it is perfectly fine. From what I understand from your situation, you will NOT have any business presence in Florida. You do not "do" any business in Florida, as I understand.

In today’s mobile/virtual world, it can be difficult to know just what constitutes doing business in a state. If you’re uncertain whether your particular business needs to foreign qualify, you should check with your attorney or accountant. However, here are some general questions to answer:

  • Does your LLC or corporation operate out of any physical presence in the state (i.e. office or retail store)?
  • Are you frequently conducting in-person meeting with clients in the state (and not just conducting business via email/phone)?
  • Does a significant portion of your company’s revenue come from the state?
  • Do any of your employees work in the state? Do you pay state payroll taxes?
  • Did you apply for a business license in the state?

Unless you answer "YES" to any of the questions above, I do not think you will be subject to Florida taxation.

Apart from this, Delaware is a good choice. For a Florida resident looking to form a business, there are a number of tax benefits to operating as a Delaware LLC. Delaware does not assess any sales tax, inventory tax or personal property tax. Delaware also allows exemptions for some investment structures. The corporate income tax in Delaware is also among the lowest in the country, at only 8.7 percent. Additionally, the license fees for many industries, such as manufacturers, retailers and LLCs engaged in farming are among the lowest in the country. The annual fee assessed on LLCs is only a flat fee of $250, as opposed to a percentage of LLC income.

I am sure this would help. I wish you good luck.

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Warm Regards,