I am starting a company, but because I will solely be an e-commerce website, who and where do I register as a company? (an LLC)

Being on-line, I could have customers in all 50 states. Do I register in all 50 states, or just where my office is located? (as of now, at my home).

Also, in the near future, I will be moving to a different state. Because this will be, for a while, a one man show, do I need to re-register, or just change my company's address?


B Rad


P.S. Is registration done nationally, or per state?

You can register in any state. Most usually choose Nevada or Delaware for tax purposes. Check with your accountant to see what he / she recommends.

You can have a website help you like Delaware LLC & Delaware S Corporation Formation or BizFilings or even an attorney like LA Biz Law

Any reponse to this: Is registration done nationally, or per state?


Regards,

eZest
http://www.e-zest.net

It depends on what you need. Usually, you incorporate in a specific state. You can get an EIN from the federal government though

Thanks Corey.

I registered my comapny "Sustained Hits" over 5 years ago.

My accountant explained to me that the S corp was a better solution down the road then the LLC.


So what is the difference between an S corporation and an LLC? And which structure is right for you?

The answer depends on your own unique situation. If operational ease and flexibility are important to you, an LLC is a good choice. If you are looking to save on employment tax and your situation warrants it, an S corporation could work for you.


A major factor that differentiates an S corporation from an LLC is the employment tax that is paid on earnings. The owner of an LLC is considered to be self-employed and, as such, must pay a “self-employment tax� which goes toward Social Security and Medicare. The entire net income of the business is subject to this tax at a rate of 15.3%.

In an S corporation, only the salary paid to the employee-owner is subject to employment tax. The remaining income that is paid as a distribution is not subject to employment tax under IRS rules. Therefore, there is the potential to realize substantial employment tax savings. Case in point:

Mary owns a print shop. In keeping with the industry standard, Mary decides that a reasonable salary for a print shop manager is $35,000 and pays herself accordingly. Mary’s total earnings for the year are $60,000: $35,000 paid in salary and the remaining $25,000 paid as a distribution from the S corp. Mary’s total employment tax is $5,355 (15.3% of $35,000).

If Mary were the owner of an LLC, she would have to pay employment tax on the entire $60,000, equaling $9,180. But as an S corporation, she realizes savings of $3,825 in employment tax.

I hope tis has helped in your decision making.

Oh.. this might also help as well.. gives you a run down side by side of the actual differences:


S Corporation | Limited Liability Company

Liability Protection Yes | Yes

Operational Control Board of Directors/Officers | May be member-managed
or manager-managed

Federal Income Tax Pass-through | Pass-through

Flexibility/Ease of Operation No; subject to some formalities and record keeping rules as traditional C corps | Yes

Ownership Restrictions Yes | No

Flexibility in Profit-Sharing No | Yes

Employment Tax Employment/payroll tax on salary; no employment tax on dividends paid to shareholders | Self-employment tax on total net income


Sorry for the poor layout :-|

Thanks techniner.

Both posts are quite insightful. While registering company S-Corp. seems good option which I never thought before.

Regards,
eZest
http://www.e-zest.net

LOL I'm 14, can I make a company? Are you guys rich or something? My father said that I should have a business when I grow up. He said that way I could make my own benifits and stuff. Is it hard to make a company? Is it alot of money? What happens if you don't pay back a loan that the bank gives you? lol

Well if you don't pay back a loan, I can assure you that it won't be any LoL matter.