Nevada Corp from Massachusetts

I'm looking to set up a Nevada S-corp to bypass paying state taxes because I read everywhere that it can be done. I live in MA and run a business that is only a web page where I earn advertising revenue. I don't sell anything. If I set up a S Corp in Nevada, will I have to pay state taxes? Will I have to Register in MA as a "foreign corp" or notify them at all?

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Reply to
randommale9999
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Actually, just a note to the lurkers out there. Anytime I get a question in my practice that starts out "I have a Nevada (or Delaware) Corporation" than I know I have someone who took the advice of someone who really doesn't know what they are talking about. Oh, except for the guy with an office in Reno. I'll give him a break, here. The point is this: If you can not explain to me in clear English why you should be incorporated in a state other than the one you live in and do business in, then you should be incorporated or otherwise registered in your own state. Period. Corollary to the above point: There may be someone out there who will benefit from registration in another state. However, if you are in a position where you are even considering getting your tax advice and information from misc.taxes.moderated, then you need to be registered in the state where you do business. I hope that helps.

Bryan

-- Bryan Kellar, EA Oregon Tax Help, Inc. -- Portland, Oregon

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Reply to
Bryan Kellar

Never say "Never."

Basically, I agree with your opinion but there can be exceptions. For example, if the corporation is structured so that it has substantial income from investments or intangible assets, incorporation in a state like Nevada may prove beneficial. To incorporate in Nevada, one needs an agent and an address in Nevada. Thus, income from such sources, if they are not part of the corporations business operations, would not be taxable in another state. Not likely to happen? Probably true but it is possible.

Lanny K. Williams, CPA Nawarat, Williams & Co., Ltd. Income Tax Services for Expatriate Americans

Reply to
Lanny Williams

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