Is LLC the way to go for me?

[thaddeus333]

California,

I have beenin business 2 years now and carry a $1 million general liablity insurnace policy. My net at the end of the year will possibly be over 50 K. I am a beverage service company, bar service to be exact. I have ben told to beome an LLC, and not in California but actually in Nevada. Does this make since. I noticed that California inflicts a mandatory 800 tax for all new LLC's is this maybe why I was directed towards Nevada? Thanks for any of the help

 

[divgradcurl]

California,

I have beenin business 2 years now and carry a $1 million general liablity insurnace policy. My net at the end of the year will possibly be over 50 K. I am a beverage service company, bar service to be exact. I have ben told to beome an LLC, and not in California but actually in Nevada. Does this make since. I noticed that California inflicts a mandatory 800 tax for all new LLC's is this maybe why I was directed towards Nevada? Thanks for any of the help

For an LLC, it probably doesn't matter if you form in CA or NV -- if you are in CA, it's probably a lot easier just to form in CA. It can make a difference if you actually incorporate, because of tax issues, but for an LLC, if you are in CA, you are going to be paying CA income tax on the money the LLC gets either way, so it's probably easier to just do it in CA.