Where should we form a LLC - New York or Connecticut?

Question

The situation is this:
3 people sharing ownership, no other employees
the product we're selling is a web application that will be a online subscription service
we've decided to form a LLC

Based on tax laws (rates, flat fees, etc), where is the more beneficial place to form a LLC between New York and Connecticut? We don't expect any income for the first 5 months of the company's formation.

Answer 1

The reason you would form an LLC is to limit your personal risk exposure in a business venture. If your risk exposure is small to begin with, i.e. you're not likely to be sued for malfeasance in the course of your business, then an LLC really isn't necessary. An ordinary partnership would suffice in this case.

From a tax standpoint it would be a wash since a multi-member LLC is treated as a partnership for tax purposes and will have to file partnership returns anyway.

There's little reason to from a Corporation, either S or C. Corporations induce an extra layer of complexity and really aren't needed unless you grow substantially.

Answer 2

Your best tax scenario with an LLC is not NY or CT, but NV first, then DE.

I would still go with a C Corp though - LLC's are getting some unwanted attention by states and some new legislation is getting passed that puts a crimp on LLC profits.

Answer 3

you may know approximately constrained legal duty business corporation (LLC), after which you bypass to legal expert and words of commercial corporation experts to help. or you may bypass to many website there clarify approximately (LLC) business corporation.

Answer 4

NEVADA!!!!