Don't Register Your LLC in Delaware or Wyoming

Attention entrepreneurs, I know many of you guys think that you can simply register your business in Delaware or Wyoming or Nevada to avoid income tax or sales tax. This is not the case in most situations. Now, if you do live in Delaware, you can avoid the sales tax, and if you do live in Wyoming, you can avoid the income tax. But if you live in another state that has income tax and you simply register your business in Wyoming, or if you register your business in Delaware to avoid the sales tax, you will not be able to avoid these taxes. You pay taxes in the state that you live in. So if you live in California, your business is $100,000, you are going to have to pay tax on that $100,000 regardless of where your LLC is registered. Simply registering your LLC in Nevada or Delaware does not save you money on taxes. This is a common misconception, so definitely avoid it. By registering in another state, you're going to end up having to pay more fees. There are benefits to registering in another state, but But one of the downsides is you have to do something called foreign qualification, and this is basically when you have to tell your state that you're living in that you registered an LLC in another state. And this is basically a way for your state to collect their annual fees to keep that LLC active and the other state to collect their annual fees to keep the LLC active. So yeah, follow me for more tips.