I'll be pursuing angel and/or VC funding (have lots of experience with this) -- but for now, do NOT want to pay $800 in taxes just because I have an LLC, when I'm SURE the company won't be making any income in that period.
Should I do a Nevada corp? Delaware? Something else? What about the California 1-year sort-of exemption from the $800 (which I can't quite figure out!)
Thanks!
2006-09-08 12:18:03 · 3 answers · asked by AspenGuy 2 in Business & Finance ➔ Corporations
You don't have to pay the $800 the first year. If your not going to make money in 2 years then you are probably just wasting your time forming the company and it will be a hassle to do filings and such which you will have to do regardless. Or you can do it in Delaware or another state instead.
2006-09-08 12:22:02 · answer #1 · answered by Tigg3cool 2 · 0⤊ 0⤋
VC firms like to see an idea with a registered corporation heading it up.They invest in the stock of the company on the premise that the investment will bring a huge return and that their shareholdings are worth something they can sell when they want to get out of the investment, if they do, best bet is go with a Nevada or DE corp or LLC.
Talk to the company corporation
www.thecompanycorporation.com or corporate.com they are the professionals in this type of formations business, or a good lawyer/accountant
2006-09-09 06:36:55 · answer #2 · answered by Latin Techie 7 · 0⤊ 0⤋
Why not just put the cash in an interest bearing escrow account and be a sole proprietor for now and incorp after you get all the funding.
No one's gonna let you just pocket the cash for two years - they want to see a return.
2006-09-08 12:24:15 · answer #3 · answered by Wait a Minute 4 · 0⤊ 0⤋