LLC Fees At the State Level
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Listen to the audio
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In this audio snippet, you'll hear about:
- People need to keep in mind that at the state level, there are certain LLC fees that are imposed irregardless of how much money they have made or not.
- There is no net income that is taxable to the state, so they find other ways of collecting money from an LLC.
- Should keep that in mind before proceeding with the LLC to see if it makes sense
Audio Transcript
Yosef:
I think you need to keep in mind that at the state level there are
certain LLC fees that are imposed regardless of how much income the LLC
may have or not. States are providing free protection to an LLC. Other
than the corporation, where the state gets the tax fee and that income
of the corporation, there is no net income to an LLC that is taxable to
the state. So the state will find other ways of imposing fees upon an
LLC, which may or may not be equitable.
People need to keep that in mind before they proceed with an LLC to see whether that is even in their best interest.
Travis:
OK. It's something that really needs to be thought through upon formation, whether that's the right entity type for them.
Yosef:
Right.
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