Legal Question in Business Law in Texas

Establishment of a cyber business

I live in Texas. I want to file for an LLC for a web design and research company in New Mexico. All my business will be done over the internet.

I will be considered a foriegn LLC in Texas.

*Will I be taxed the same in Texas as a foriegn LLC as I would if filed my LLC in this state?

*Since my work consists of e-mailing information and attachments, and it is all a cyber-space business, do I avoid the ''foreign LLC tax'' in this state?

The SBA does not have a clue.


Asked on 2/05/01, 12:06 am

2 Answers from Attorneys
Charles Aspinwall Charles S. Aspinwall, J.D., LLC

Re: Establishment of a cyber business

To legally do business in TX a NM LLC must register as a foreign LLC in TX. In addition to double registration fees, there may be double income tax impacts in both TX and NM.

There does not appear to be a valid business reason why an operation based wholly in TX would incorporate in NM rather than TX and cause itself a second layer of potential tax problems.

Why not incorporate in TX and avoid the questions?

Read more
Answered on 3/19/01, 9:06 am

Re: Establishment of a cyber business

If you're doing business in Texas (i.e. you're located here, have employees here, etc.) then you will have to register the company in Texas, and obtain a certificate of authority. Most likely, you would incur taxes in both NM and TX under this scenario. I don't understand from your facts why you wouldn't just get a Texas LLC to begin with, in order to avoid being double taxed. I can assist you with either the Texas certificate of authority or forming a Texas LLC.

Read more
Answered on 3/19/01, 2:03 pm


Related Questions & Answers

More Business Law questions and answers in Texas