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I recently filed my company as an LLC expecting to get some small jobs in my local area. Through my professional connections I might land a contract that would span in multiple states across the U.S. Many of these projects could be short notice. From my understanding, being an LLC I would have to file as a foreign entity in every state I do buisness in, is that correct? Would there be a better choice for this type of work to file the company as? |
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I don't think so. I've been in business 10 years working all over the world. Neither my accountant or attorney have ever said a word until I had one new employee working, living, and having payroll tax in another state. Then I had to file a foreign for him in Florida. It has to do with if you have a location, employee in another state, not just doing work there. |
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You would probably "have to" file as a foreign LLC, but most States will turn blind eye on you not doing that. Notable exception is California. If you work there as a LLC and not a sole proprietor, expect the FTB chasing you for the $800 yearly LLC fee. You have to pay taxes to the States you work at, and if the States don't treat LLC as a disregarded entity (as, again, California, for example), that would be yet another reason not to forgo the registration. If you have to sue in a State, or have employees there, you'll have to be registered there first. You might want to consider working as a sole proprietor, unless there's a specific reason for LLC. As a single member with no employees, the limited liability won't protect you from your own misconduct and you'll have to have professional insurance anyway. Do consult with an attorney, as I'm not one and only voice an opinion. |
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