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I have a film production company LLC registered in Florida.

I have a film...

I have a film production company LLC registered in Florida. However, my husband and I just moved to Colorado. I'm putting together a co-production deal with a company out of Indiana. We'll be doing the filming in Africa and probably editing in Los Angeles. I'd like to keep my current LLC in Florida. My question is - what address should I use for my co-production agreement? Would it be better to form a separate LLC in Colorado for this production? I think the tax situation is better in Florida than here, so what's your advice?

Accountant's Assistant: The Accountant will know how to help. Is there anything else important you think the Accountant should know?

I don't think so.

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Customer reply replied 6 months ago
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call.
Customer reply replied 6 months ago
Let me know if you need more information, or send me the service offer(s) so we can proceed.
Answered in 6 minutes by:
11/19/2017
bkb1956
bkb1956, Finance Enthusiast
Category: Finance
Satisfied Customers: 6,013
Experience: IRS Enrolled Agent, 20+ years of experience in tax preparation with associated finance experience.
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Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Based on the information you provided, none of the "work" will actually be done in Colorado. Correct?

If that is the case, use the LLC's Florida address since that is where the LLC was formed.

You can register your Florida LLC in Colorado as a foreign LLC qualified to do business in Colorado.

I see you have requested a phone call. Let me know if that is the case, and feel free to initiate it at your end.

Thank you.

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Customer reply replied 6 months ago
what is the phone number?

I will make you an offer for a phone call. I have to initiate the actual call at my end.

You can choose to accept or decline the phone call offer.

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Customer reply replied 6 months ago
Oh, that's extra. I just bought the monthly package. So, I'm fine doing this here on chat. As for work performed in Colorado, yes, I'll be working from where ever I am on writing and development. Is there an advantage to keeping my LLC in Florida?

You can keep your LLC in Florida, but if you will have an office, perform work in Colorado, etc., you will have to register as a "foreign" LLC in Colorado.

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The following link contains great information you will find helpful:

https://www.nolo.com/legal-encyclopedia/how-qualify-foreign-business-colorado.html

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Are you planning to return to Florida, or have you moved to Colorado permanently?

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Customer reply replied 6 months ago
Colorado permanently.

What is the LLC's entity status?

C corporation? S corporation? Partnership? Sole Proprietorship?

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Customer reply replied 6 months ago
Single member

So you're a sole proprietor and use Schedule C to report income and expenses?

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Customer reply replied 6 months ago
Also, here's the another question, I just bought a house to fix and flip under this LLC in Colorado. What are the implications of that if any?

If that is the case, there's no tax advantage to keep the Florida LLC because you will still have to report your income to Colorado.

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Just because your LLC was formed in Florida does not mean that you will not report and pay tax on your income in Colorado. You are now a resident of Colorado, which has personal income tax, but Florida does not.

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You should not use the same LLC to conduct two entirely different businesses--film production and house flipping.

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Customer reply replied 6 months ago
What are the steps I can take to untangle each? We haven't closed on the house yet.
Customer reply replied 6 months ago
Also, since it's near the end of the year and most of my income was earned in Florida, do I need to file in each state?
Customer reply replied 6 months ago
I'm thinking it may be faster and easier to just branch off the production company into another LLC formed in Colorado and keep the house in the original.

Perfect!

You will form two LLCs in Colorado--one for the house flipping and one for film production.

Once the LLC is formed for house flipping, have the "old" LLC assign the contract to the "new" LLC. This way, when the closing takes place the correct LLC will have ownership and corrective documents will not be required.

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You don't file a tax return in Florida.

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You can then dissolve the LLC in Florida.

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You can't use the original LLC for the house flipping because you have already formed it for film production.

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You will file a Colorado return as a part year resident so you are not taxed on all of your income for the year.

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Customer reply replied 6 months ago
would you suggest to go ahead and close with the original LLC and then assign the house contract to the new LLC? Or beforehand? How quickly can that be done? We close on the 28th.

Form the new LLC for the house flipping as soon as possible. There usually are expedited services where the LLC can be filed the same day.

Then assign the contract from the Florida LLC to the new Colorado LLC.

Then dissolve the Florida LLC. If you dissolve the Florida LLC first, there will be nothing to assign from.

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Then form your second LLC for film production.

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Customer reply replied 6 months ago
I also have the funds in my original LLC account to pay for the house. How do I handle that?

Just transfer the funds from the original LLC account to the new LLC account.

My best advice would be to keep the Florida LLC active until 12/31/17 just in case there are loose ends that need to be handled.

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You will have to move fairly quickly on forming the LLC and opening a bank account by the 28th (because of the Thanksgiving holiday), but it can be done.

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Customer reply replied 6 months ago
Thank you.
Customer reply replied 6 months ago
What type of LLC should I form for each?

My pleasure.

You can keep the LLC as a sole member to keep things simple and you use your personal tax return (Form 1040).

If you form an LLC and elect to be taxed as a corporation or partnership, each entity will have to file its own tax return and you will have to file a personal tax return.

At his point, please take a moment to rate my answers thus far since that is the only way I receive credit for answering you.

bkb1956
bkb1956, Finance Enthusiast
Category: Finance
Satisfied Customers: 6,013
Experience: IRS Enrolled Agent, 20+ years of experience in tax preparation with associated finance experience.
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bkb1956 and 87 other Finance Specialists are ready to help you
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Customer reply replied 6 months ago
Thank you!
Customer reply replied 6 months ago
I may have more additional questions.

My pleasure.

Thank YOU for the positive rating of my answer. It is very much appreciated!

I look forward to hearing from you in the future.

Enjoy the rest of your weekend!

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bkb1956
bkb1956, Finance Enthusiast
Category: Finance
Satisfied Customers: 6,013
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