I’m looking to open an LLC in Delaware (or WY) for a online company. What should I look for? What should I be aware of? What are some pros and cons and the fine print?

An important step is also choosing the right tax classification and understanding your sales tax nexus as you are a online company. This is so you avoid any surprises later.

LLCs can be taxed as S, C, Sole proprietor(single member) or partnerships (multi member).

Before you form your corporation or LLC, a best practice is to consult with a CPA to ensure you have a basic understanding of tax compliances . They can also provide you special reports like S Corporation tax savings based on your projected income for the year.

Also, many CPAs also assist with company formation with 3–4 day turn around times.

 

** Our response to a question posted on quora


Posted In: Company Formation

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