All Forum Posts by: Account Closed

What is the status of this? If you are referencing the taxation of flip v. rental income, the variance could be quite drastic based on the holding period of the investments.

There are tax treaties that exist between the U.S and many countries -- including China. Eliminating double taxation is a part of such treaties. 

Based on the specific instance here, if the income of a Chinese investor or business is taxed here in the U.S at say 35%, they are able to apply the tax amount paid in the U.S towards what their tax liability would be in China on the same taxable income. If they overpaid here in the U.S, a credit could be utilized in China to a certain number of years -- 5 or so. 

If the Chinese tax on the taxable income exceeds the tax paid in the U.S, they (the Chinese investor or business) would then have to pay the differential in Chinese tax and not the 75% for instance.

It depends on the exact nature of what it is you plan on doing. You may connect and discuss or also respond on here.

It wasn't meant to be a lesson Rob but you are welcome all the same. I'll try to address a few things you mentioned which actually is misinformation in a way and civility in the tone would be great!

Regarding this: "Do you know why Wyoming is so popular for incorporating? Because it's cheap. That's it. That's the deal. .."

Well, lets see... technically and contrary to what you might think, Wyoming isn't the cheapest per se in terms of how much it actually cost you to incorporate. That would be Kentucky and there are a few other states that cost less to incorporate in than Wyoming. You can see the cost data here: http://www.incorporatefast.com/filingfee.asp ; because a state has the cheapest fee doesn't mean cheapest total cost from a business perspective.

There might be some slight variance in prices as some of the states tweak these prices sometimes but it isnt materially different. The point is that although Kentucky is one of the cheapest to incorporate in, when looking at the aggregate benefits of the sort discussed earlier, Wyoming tops that list.

Regarding what you said here: "I'm often criticized for my stance against setting up LLCs and sticking with personal ownership.."

I can see why.. also personal preferences have a way of clouding judgement.. there are many reasons why trying to hold business investments or conduct any type of business as a sole proprietor makes not much sense.. it doesn't mean it doesn't for you though.

I also don't remember him saying he wanted legal advice but rather trying to decide which state to incorporate. If you are used to dealing as a sole proprietor that would probably explain the misunderstandings on how or why incorporating in some states could be an administrative nightmare. There is often always a short term quick fix solution to a problem and solutions that have flexibility in addressing a business need as the entity grows.

Unless you are wholesaling with cash (and I mean your money in your bank account cash), most newbies wholesaling utilize lenders that either prefer or in some cases require using an LLC as a funding requirement. He also mentioned he may venture into rehabbing and that may involve activities in other states. He benefits more from having an LLC than not and each state have a varying level of benefit.

Not necessarily.., there is some flexibility with the meaning of: "doing business in the state of New York". There is also quite a bit regarding how he is structured and exact nature of his activities that is not clear to determine. The foreign entity may also be doing more business outside New York than within it hence operating in New York as a foreign entity may be justified for a variety of reasons.

Incorporating outside of New York (or most other states -- not just picking on NY here) is beyond just fees and taxes but also in varying levels of required bureaucracy,  administrative headaches in managing the entity, privacy issues, required shareholder meetings and records/minutes of those meetings and just business climate which vary by state. 

There is a reason why Wyoming ranks #1 of 50 states on this list in terms of the referenced climate being favorable for businesses and Nevada #3; New York is ranked 49 of 50 states on this list for a reason. 

Again, this isn't saying New York isn't a great market but some environments are more 'friendly' to businesses than others in terms of where you incorporate.

http://taxfoundation.org/article/2015-state-business-tax-climate-index

This depends on some of your personal goals. The states you mentioned as incorporation sites, have some similarities in regards to how the entity is taxed and privacy.

@Eric Narciso

That depends on the exact nature of how you plan to go about things. The state where you reside should also be able to advise you of an exact list of things that you need for an LLC there.

Some links with some information you might need:

http://www.leg.state.nv.us/NRS/NRS-086.html

It is a great piece of software and seems to fit what I need to use it for.

Has anyone used this program for any accounting functions? It appears to be somewhat robust for a free open source application with no fees. 

You should be able to download install and compare with any other applications which you might be familiar with.

http://www.gnucash.org

 Did the CPA mention why that was the best route?