Personal Tax for NV Corporations

[blueman]

What is the name of your state? MN

Hi there,
I am based in MN and planning to setup either an S-Corp or an LLC. One of the benefits of NV incorporation is no corporate taxes. But as a resident of MN I assume that this is of no benefit to me as the income of the S-Corp or LLC would be taxed as personal income in MN. Is that correct??

Thanks .... Blueman

 

[seniorjudge]

You need to hire a good tax CPA to help you with your ongoing tax questions if you are setting up a business.

 

[divgradcurl]

What is the name of your state? MN

Hi there,
I am based in MN and planning to setup either an S-Corp or an LLC. One of the benefits of NV incorporation is no corporate taxes. But as a resident of MN I assume that this is of no benefit to me as the income of the S-Corp or LLC would be taxed as personal income in MN. Is that correct??

Thanks .... Blueman

That is correct, unless you opt to have taxes done at the corporate level.

 

[clueless3]

It's a common misconception that a Nev Corp would "save" in taxes. This is not true.

Federal corporate income tax: a Nev Corp has to pay Federal corporate income tax, period.

State corporate income tax: No, a Nev Corp does not have to pay corporate income tax to the state of Nev, but if that Corp does business in NM then it might have to pay state income tax there (if that's the case for NM).

Federal personal income tax: the employees and shareholders of a Nev Corp must pay Federal personal income tax, period.

State personal income tax: No, the employees and shareholders of a Nev Corp don't have to pay income tax to the state of Nev, but if the employees or shareholders live in a state that levies personal income tax, there is little they can do to avoid it.