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Thanks for your comment Galina Votolato, have a nice day.
- Cole Dagres, Staff Member
i'm conducting business in texas in georgia but have a california llc uh so the question here is asking you know with an existing california llc do they also need a texas llc and a georgia llc in addition to the california llc first off i am not your lawyer i'm not your cpa i am just providing useful information that's uh factual as far as i know uh that you can google anywhere uh use me as a resource not your only resource it's not advice this is just a guy who owns a business formation service talking about questions that we get in the chat and in comments in other platforms uh so the answer to this question is kind of loaded here this is a really interesting one um first off as a reminder if you haven't watched the videos on uh there are deeper videos about llc's you need to know that an llc is a state entity not a federal entity so uh someone like amazon has their domestic llc in uh delaware and then they've got a foreign sorry they don't have an llc they're a corporation so let's use llc incorporation interchangeably here so go with me so amazon has a delaware corporation a domestic okay so the state of origin that you create your llc in sorry i'm gonna use corporation the state of origin that you create your corporation or llc in is the domestic state okay state of origin i formed my llc or corporation in delaware it is my domestic llc or corporation and then if i want to expand to texas and i want to have employees in texas i then need to create another llc or corporation in texas but that's not my state of origin delaware is where the home office the headquarters even if you actually headquarters another state the the corporation llc headquarters in the in the kind of the abstract mind of the llc is in delaware or the state of origin the state of domestication the domestic state uh the the any additional states that you form in are foreign so it's not domestic is in united states foreign is in france germany wherever it's all within the united states so the the domestic is the state that you originally formed in and the foreign states are every other state that you formed in so in this person's case if they were to go through with this their domestic llc would be in california and then they would form a foreign llc in texas and a foreign llc in georgia that is an option they don't necessarily need to do that different states have different rules california is really really hardcore and so if you have anybody working for you in california like they won't even let you perform business until you get that foreign llc or corporation file hard no on that um but it's a little like there's a lot of gray area loosey-goosey it's like well you know who's performing the work is it a um is it a contractor is the contractor have an llc in that state and you're just hiring the contractor in another state then kind of you don't need that right are you physically going to another state and doing work then maybe i mean if you are you doing a one-off job um if you're doing a one-off job and your insurance company says it's okay then you know why not right uh check with a check with an attorney on this um but you know if you're just doing like a one-off job or you know i'm in texas and i'm performing the work in texas for a wyoming company i'm still doing the work in texas um if you're doing one-off things like that i don't really think the government is going to really you know give a lot of cares about that it's when you're actually like performing real work for an extended period of time that they're gonna want their revenue okay so it's about taxes this is all about taxes and so if you're a texas llc sorry if you're a california if you're a california llc and you're going into texas for one job that's probably a gray area okay this probably something where you know texas is not going to lost my life um texas is not going to like go crazy about this it might be a technicality but like is texas going to come after you and like hold your feet to the fire i don't know i don't know about that um but if you're like performing work in texas and georgia on a regular basis and that is becoming a branch like a a home base for you and you're really expanding so like you've been successful in california doing tile work and now you're going to georgia and you're opening a store or you're doing recurring work in georgia and you're doing recurring work in texas then yes it does make sense to do that because texas and georgia are going to want their tax revenue all right not every state has tax revenue you know texas is a no income state uh for businesses delaware wyoming uh nevada the texas one is kind of loosey-goosey because like it's up to 1.127 million dollars over that then you have to like you know uh fill out a bunch of stuff and have expenses and whatever but if you're making a million dollars a year in texas there's no state income tax from there you still have income tax from the federal government but the state government not so it is really all about the state income taxes the states want the money that you make from within the state so again i don't quote me on this but if you're doing like a one-off job it's probably not that big of a deal the state's not gonna know they're not gonna come after you um what are they gonna do like go across state lines and drag you back probably not um and if it's if it's of a digital nature like you go you fly for a wedding and you take photos uh in another state and fly back you know like there's no way to track that so i i could be getting in trouble right now just for like the state governments are going to like watch this youtube video and be like we are holding you responsible for multi billions of dollars that these small businesses have you know accumulated and earned in our states and we didn't get the tax money so but that's on me not on you so anyway hopefully this has been helpful for you and a little bit entertaining uh but that's basically kind of how that works um you know again all you can always talk to a professional um and get you know deeper advice if you're worried about it um but that is kind of an overview um if you like the video like subscribe share with a friend go to betterlegal.com and use us if you are doing this like this person could have actually you know bought these foreign llc's through us uh which would be cool so if you need domestication this is called domestic sorry that's not called domestication if you want this or you need domestication which is another thing we can help you with all of that so go to betterlegal.com chat with us um and we'll be happy to have you as a customer until the next video
Thanks Trinh your participation is very much appreciated
- Cole Dagres
About the author
I've studied public policy at Western Colorado University in Gunnison and I am an expert in nuclear energy policy. I usually feel smart. My previous job was cameraman I held this position for 8 years, I love talking about web design and fishing. Huge fan of Madonna I practice snowmobile racing and collect pin-back buttons.
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