Legal Question in Business Law in New Jersey

Hello, I own an LLC registered in New Jersey but am looking to move it to Delaware (I would continue to reside in NJ). Would this be advantageous to me in any way in regard to taxation? i.e., would I still have to pay NJ state tax? I read that you're still obliged to pay state tax in the state you do business in - but I do 100% of my business online, nationally, and I'm not sure if this move would be worthwhile.


Asked on 10/18/10, 7:51 am

2 Answers from Attorneys
John Corbett Corbett Law Firm LLC

There is rarely any advantage in moving a company outside of the State in which it does business unless the company is to be publically traded or owned by persons outside of the State. It is unlikely that there would be a tax advantage and probably that the costs would be higher. You should review the situation with a lawyer who can look at your specific situation. /p/ See also: http://info.corbettlaw.net/lawguru.htm

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Answered on 10/23/10, 9:51 am
Ronald Cappuccio Ronald J. Cappuccio, J.D., LL.M.(Tax)

There may be a significant advantage to moving your online business. New Jersey has a very complex and onerous Sales Tax system. At a minimum, as a NJ LLC, your business would be subject to a state tax audit. Delaware does not have a Sales Tax and it may help your busines to be located there.

In any case, if you are a member of the LLC, you would have to pay state income tax on the earnings of the business.

Frankly, you need an experienced tax lawyer to analyze this.

I hope this helps!

Ron Cappuccio

http://TaxEsq.com

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Answered on 10/24/10, 4:57 pm


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