Legal Question in Business Law in Illinois
If living in Illinois, and desiring to form an LLC in Nevada with several other parties, are there any prohibitions or impediments to this such as; needing to reside in Nevada, or any particular tax implications of such an endeavor?
1 Answer from Attorneys
Nevada like most states will require that you have a "registered agent" that is a "resident" of the state. There are companies that specialize in being registered agents for a relatively nominal annual fee. If your business will actually be in Illinois, or the actual "base of operations" is in Illinois and may own property here, you may also need to register the Nevada LLC as a foreign LLC in Illinois -- this means double franchise taxes -- Nevada and Illinois, and double the annual reports and filings. There could be federal income tax implications to the members depending on how the LLC reports its taxes -- like a corporation or like a partnership. As to State tax issues, I do not practice in Nevada so I can not tell you whether Nevada would want to claim LLC level or member level tax (or both) in addition to Illinois; for that you should consult an attorney licensed in Nevada who practices corporate and taxation law.
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