what it is I do..

I work for a really innovative company that forms corporations and LLCs' for business nationwide. I love what I do. I come in every morning and help hundreds of businesses getting set up. Its a real privilege and responsibility if you ask me, I love it. That's why I continue to educate myself in the field of business formation and operations. W

One of the main questions I have been getting allot recently is "Greg I'm starting a web based "virtual business" what entity should I be and where should I form out of?"


Online businesses are different from traditional businesses in many ways that make them especially good candidates for operating out of a Tax haven state as formal business entity like a corporation or LLC.

Tax havens are generally states that are very business and tax friendly — no corporate taxes, franchise taxes or personal income taxes. There are two major tax havens in the United States — Nevada and Wyoming.

If you operate a pure online business chances are your company only exists in a virtual world. If you don't keep office space and instead of employees you have independent contractors — such as programmers and server administrators, who are often in developing countries — you are a perfect candidate for saving on taxes via a tax haven.

Keep in mind that as soon as you issue yourself payroll, your corporation or LLC will need to register to transact business in your state — meaning it will have to pay taxes from all income derived in that state. Therefore, you should try to take money out of your company in the form of loans and dividends.

Once you have formed your corporation or LLC, you will need to open a bank account in that state. It is imperative that your bank account has a routing number associated with your state of formation. PLEASE don’t make the mistake of opening an account in California if you are trying to establish that the company is legitimately operating out of Nevada or Wyoming. You have to look at this as a complete separation of yourself and your business. You need to operate your company out of the state in which it is domiciled. I have a contact over at Bank of America that can help us get the bank account set up in a different state without you having to go there. In Nevada our contact is Travis and can be reached at 702-883-8111 he is a business specialist at BofA in Las Vegas and can assit you wih opening a Nevada bank Account. mention myLLC.com for special perks.