Legal Question in Business Law in Texas

i have an LLC in Nevada, is it better to register it in TX as an LLC or do I have to register as a foreign entity?


Asked on 12/18/09, 3:39 pm

1 Answer from Attorneys

Darrel Behring Darrel D. Behring, PC

It is probably better to form a Texas LLC as a subsidiary of the Nevada LLC. Registering the Nevada LLC as a foreign corporation doing business in Texas may result in higher Texas Franchise taxes than using the Texas LLC as a subsidiary of the Nevada LLC. The best person to advise you on this is your CPA or other tax advisor. Because you formed your first business in Nevada and are now looking at Texas suggests some part of your total business is from other than Texas transactions. If so, you want to keep non-texas business seperated from other states business activity. Also, you can control charges to the Texas LLC with possible service fees going to the Nevada LLC to reduce net profits of the Texas LLC.

Good Luck. Darrel Behring

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Answered on 12/23/09, 8:34 pm


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