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Stripe Atlas for LLCs

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Re: Stripe Atlas for LLCs

#181

Post by xapata »

gk1 wrote: post #21
freehunter wrote: post #14

Damn, I was hoping for this about 6 months ago, I ended up filing my own paperwork instead. It was actually easier and cheaper than I thought for my state (Michigan). $50 and like five lines on a form. I even got my own EID completely online in about 10 minutes, and a bank account at my local small business bank the same day. But just like with Stripe Atlas for C-Corps, what you're paying for isn't the paperwork and…

> I'd say it's worth it because to be honest I have no idea what my company's responsibilities for taxes are and yeah that makes me a little uneasy. Yikes. You should get an accountant. Ask for referrals from other businesses in your area that are similar to yours. Ask your local co-working spaces or incubators. Google...

And don't skimp on a quality accountant. I "saved" $2k one year by shopping for a bargain accountant. I've since learned his advice cost me between $50k and $100k in unnecessary taxes.

Re: Stripe Atlas for LLCs

#182

Post by xapata »

zawerf wrote: post #148

Is the LLC anonymous by default? For privacy reasons, not legal. I know I can still get subpoenaed. I just don't want my name/address associated with the company on anything public. It seems to do this I will need a lawyer to be my registered agent for mail forwarding (a regular mail forwarding service such as https://www.virtualpostmail.com/services/registered-agent/ was apparently not enough since it doesn't have a…

Delaware ain't the Caribbean.

Re: Stripe Atlas for LLCs

#183

Post by nodesocket »

nodesocket wrote: post #163
pbnjay wrote: post #155

Earlier quoted context omitted.

Watch out - Tennessee has an 6.5% excise tax on LLCs which is essentially an income tax if you're self employed. https://www.tn.gov/revenue/taxes/franchise---excise-tax.html

-- Update: Buried deep in the depths of TN website and using the most confusing and counterintuitive language ever assembled is this article: https://revenue.support.tn.gov/hc/en-us/articles/204647155-W... Essentially it says if I am a disregarded entity for federal tax purposes I am exempt from both franchise and exercise taxes.

Ok, I am even more confused after reading this:

https://revenue.support.tn.gov/hc/en-us/article_attachments/...

How do you even have a single member LLC that is a disregarded entity where the single entity is a corporation? Huh?

That seems to indicate I am responsible for these taxes?

Re: Stripe Atlas for LLCs

#184

Post by chrisweekly »

S-Corp always seems to get short shrift compared to LLC. I live in MA, where I registered my S-Corp, and it simply costs less, w/ no downside. Do your research (or, better, ask your accountant) before following the herd! :)

Re: Stripe Atlas for LLCs

#185

Post by nodesocket »

chrisweekly wrote: post #184

S-Corp always seems to get short shrift compared to LLC. I live in MA, where I registered my S-Corp, and it simply costs less, w/ no downside. Do your research (or, better, ask your accountant) before following the herd! :)

There is downside to S-Corps. Lots more regulatory requirements, minutes, and tax forms required. As a general rule of thumb assuming you are a single person company it doesn't make sense unless profits are greater than at a minimum of $150,000 a year. At that level you can pay yourself a "reasonable" salary say $80,000 and then lump dividend for the rest which is taxed at 15%.

Re: Stripe Atlas for LLCs

#186

Post by dragonwriter »

heavenlyhash wrote: post #109
matthewmcg wrote: post #53

Earlier quoted context omitted.

He's referring to the fact that, by default, the United States taxes LLCs having more than one member as a partnership. An interest in a partnership is taxed differently than an interest in a corporation (stock).

citation, since I have it open: https://www.irs.gov/businesses/small-businesses-self-employe... > Specifically, a domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless [...etc...] (To grandparent comment: for what it's worth, I too find it highly confusing that "partnership" and "LLP" (vs LL C ) are both terms and not as closely related as one might first suspect…

> for what it's worth, I too find it highly confusing that "partnership" and "LLP" (vs LLC) are both terms and not as closely related as one might first suspect...

They are just as closely related as one might suspect: an LLP is a partnership where the partners enjoy limited liability.

An LLC is not a partnership, though multimember LLCs are, by default, treated like a partnership for federal income tax purposes.

(The LLC is a fairly new form of business entity originally created as a lower overhead alternative to the corporation that would provide a distinct entity for corporate joint ventures; the LLP is also fairly new, but [in its US form] it was formed to protect innocent members of professional firms from personal liability for actions of other members of the firms, and is in many jurisdictions restricted to professional firms.)

LPs and LLLPs make things even more fun, though.

Re: Stripe Atlas for LLCs

#187

Post by inertial »

Relevant for non-residents / foreign owned LLC :

https://onlinetaxman.com/us-llc-tax-haven-for-foreigners/

If you don’t have a dependent agent that substantially furthers your business in the US and don’t have an office in the US, you are not subject to US tax. Even if the LLC generates income in the US, the income is not taxed in the US.

Furthermore, if you reside in a country with an applicable tax treaty with the US, then you would not be subject to US tax. Since you reside in your tax home, you can claim you operate a “permanent establishment” (e.g., an office or other fixed place of business) in your home country.

Re: Stripe Atlas for LLCs

#188

Post by JumpCrisscross »

nodesocket wrote: post #183
nodesocket wrote: post #163

Earlier quoted context omitted.

-- Update: Buried deep in the depths of TN website and using the most confusing and counterintuitive language ever assembled is this article: https://revenue.support.tn.gov/hc/en-us/articles/204647155-W... Essentially it says if I am a disregarded entity for federal tax purposes I am exempt from both franchise and exercise taxes.

Ok, I am even more confused after reading this: https://revenue.support.tn.gov/hc/en-us/article_attachments/... How do you even have a single member LLC that is a disregarded entity where the single entity is a corporation? Huh? That seems to indicate I am responsible for these taxes?

> How do you even have a single member LLC that is a disregarded entity where the single entity is a corporation?

LLC stands for "limited liability company," not corporation [1]. When one says "corporation" in a legal sense, it is typically understood to exclude LLCs. (That said, LLCs can elect to be treated as corporations for tax purposes.)

[1] https://en.wikipedia.org/wiki/Limited_liability_company

Re: Stripe Atlas for LLCs

#189

Post by JumpCrisscross »

wilg wrote: post #153
nodesocket wrote: post #61

> Is organized in Delaware, the jurisdiction of choice for many new LLCs. Be aware that if you are "doing business" in California which means you live there you also have to file as a California foreign entity and pay the absurd anti-small business flat tax of $800 a year. This also does not include your state income tax liabilities in California. Just because the LLC is formed in Delaware does not mean you don't hav…

Given this, is there any advantage (as a Californian) to having a Delaware LLC?

> is there any advantage (as a Californian) to having a Delaware LLC?

Two big advantages to Delaware:

1. Fast courts. When I last looked, it was 180 days from complaint to decision in the Superior Courts while California took 900+ days. (Also notable, Delaware proudly publishes these statistics. California's were tougher to find.)

2. Developed law. Since most companies are in Delaware, most law is settled in Delaware. Lots of edge cases have been smoothed out. It's also a more business-friendly code than California's.

That said, everyone's situation is different. Consulting with a lawyer is advisable.

Re: Stripe Atlas for LLCs

#190

Post by uiri »

kentt wrote: post #135
patio11 wrote: post #6

Hiya folks! I worked with the team on this; happy to answer any questions you have.

I appreciate the advice you've given through your blog and podcast. Thanks for taking the time to create those things. They've been inspiring. I'm wonder if a US LLC would be better for me? I'm a mISV in Canada. I use Stripe & PayPal and make almost enough to live on. I have a US bank account but Canadian everything else (sole proprietorship, business license, tax id, citizenship, etc.). I don't plan on ever being fu…

US LLC has... interesting interactions with Canadian tax law and the US-Canada tax treaty. Even if it is formed in the US, if management and control are in Canada, it may be considered a Canadian corporation. Canadian-controlled private corporation is an advantageous tax status you'd miss out on with a US entity. Bottom line, see a Canadian tax accountant.
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