Thinking of forming an LLC
 

Hey guys, me and 2 of my partner were thinking of starting an LLC but were not sure of a few things, i hope we can get these questions cleared. If anybody familiar or has an LLC company please help :) am a total noob when it comes to taxes... anyway here are my questions.

1. My partner is in the US (Cali) one is in canada (my brother) how do we pay taxes? do we pay our taxes as a company that based where the LLC is located? what is the process for this?

2. How much money can we save forming an LLC?

I know my questions are kind of vague but am just as confuse as what to ask myself, so anybody with any experience in this?

i have done quite a quite a bit of research (through uni) towards using llc's, partnerships, trusts , QC's etc..

it is in context of NZ law. but it should be quite similar to US cause we have the same sort of system (both of us got fucked on by the english)...

LLc: main benifit is the whole issue of limited liability. in terms of of taxes its not as good as partnerships of QC's.i think in the us they charge a special tax on sole traders hence many people can save on tax by forming companies or partnerships.. plus when u start a company all revenue has to be accounted for ie u cant just take money from the company account and buy lunch...

i cant realy give u can any good advise as to whats the best option are, as i dont know why u want to set up a llc (for preventing liability or tax) and what ur business is or ur liabilites are....

i have a few purpose for wanting to form an LLC, although am not really sure about all the benifits but from what ive learned is that you get to protect your personal assets and maybe saving some tax money because as off rightnow am paying 50% in tax and that is rediculous. As for what company we are, we are basicly producing mangas, cg pictures so i guess we can claim alot of artist that we hire etc...

You may want to consider forming an LLP (Limited Liability Partnership) if ownership will be completely split. It doesnt really matter all too much though. Otherwise, you pay taxes for where you are incorporated, so the US.

Enjoy.

am thinking i still have to pay some taxes in canada because i LIVE in canada and using their healthcare. They won't let me live here for free do they?

Thats a good question. You'd probably be better off talking to a real attorney or CPA to address that. The armchair attorneys on here may not be giivng the proper advice (self included!) :)

good luck