Hello,
I'm in preparation of licensing intellectual property. The
intellectual property is mine and is derived from the filing of
several patents. The field is Internet. The plan is to acquire a small
number of exclusive licensee, i.e. a corporation licensing my
intellectual property. I don't foresee to have more than 5 licensee.
The potential licensee are large american corporations with
international operations. The estimated revenues from licensing are in
the range of $50K to $500K annually.
I'm currently residing in California. I may move to Florida, another
US state, or outside US later on this year or the next one (meaning I
will move the physical place were I reside and operate).
I have several questions, but they are mostly similar one to the other.
In relation of my residing and operating in California my questions are:
- What are the out of the pocket cost of opening and maintain an LLC
in California. (For the first year and afterwards. In terms of filing
fees and taxation, e.g. California taxation and any other taxation, if
any. Any other costs?)
- What are the out of the pocket cost of opening and maintain an LLC
in Delaware. (For the first year and afterwards. In terms of filing
fees and taxation, e.g. California taxation, Delaware taxation, and
any other taxation, if any. Any other costs?)
Please provide examples for incomes of $-0-, $100K, $500K, and $1M
In relation of my possible move of residence and operation outside of
California my questions are:
- If I open the LLC in California, after I move my residence outside
California, am I still required to pay personal income taxes, or any
other tax, to California?
- In the year of the move, i.e. the year in which I only partly reside
in California, what proportion of personal income taxes do I owe to
California (e.g., I move end of April, 4 mo. are spent in CA, then I
owe 33% of taxes to CA)?. There is a minimum amount of days to qualify
as resident for the year (e.g., if I spend less than 4 mo. I don't
qualify as resident anymore)?
- What are the out of the pocket cost of maintain an LLC in
California. (In terms of taxation, e.g. California taxation, Florida
taxation, another US state taxation, and any other taxation if any.
Any other costs?)
- What are the out of the pocket cost of maintain an LLC in Delaware.
(In terms of taxation, e.g. California taxation, Florida taxation,
another US state taxation, and any other taxation if any. Any other
costs?)
- If I move outside US altogether what should I expect in terms of
income taxes, LLC taxes, and any other possible federal or state tax.
(Federal, social security, and any other taxation, if any.)
Please provide examples for incomes of $-0-, $100K, $500K, and $1M
Please also provide liability protection considerations for the above
scenarios. Any personal take and insight is quite welcome.
Thank you |
Clarification of Question by
easytipper-ga
on
18 Feb 2005 19:05 PST
I used the term out of pocket costs as a catch all umbrella of cost
related to the LLC. The filing fee, taxation, etc. are examples for
the cause of the costs. Maybe I should have included the term annual
fees, used the term tax only in relation to personal income taxes, and
avoided the term tax in relation to the LLC, since the LLC is a pass
through entity in term of taxation, at least if I don't elect
otherwise.
I did a certain amount of research on LLC's before to ask my question
and I'm already aware that there are several cost related to opening
and operating an LLC. Here are few links to relevant information:
http://www.nolo.com > search for "Form Your Own Limited Liability
Company". (Requires payment to download pdf.)
http://www.corporate.com/
http://answers.google.com/answers/threadview?id=430966
http://www.allbusiness.com/articles/content/article.asp?ID=590&CenterID=31&CatID=1799
http://answers.google.com/answers/threadview?id=420519
http://answers.google.com/answers/threadview?id=361568
http://answers.google.com/answers/threadview?id=343858
http://www.ftb.ca.gov/forms/misc/3556.html
http://answers.google.com/answers/threadview?id=208714
http://www.sba.gov/starting_business/
http://answers.google.com/answers/threadview?id=107228
http://www.taxadmin.org/fta/rate/ind_inc.html
http://www.state.de.us/corp/frtax.shtml
In particular, for a California LLC there is a minimum annual fee of
$800 and in Delaware a fix annual fee of $200. It is my understanding
that if I open an out of state company (e.g. in Delaware), but I
operate it from California, then I have to register it as a foreign
company and pay more or less the same annual fee of $800 (on top of
the fees for the other state).
What I need are mostly numbers, e.g. total cost with break downs.
State or federal related cost for: including but not limited to:
opening, operating, and maintain an LLC, plus any other cost (if any)
excluding the one actually related of doing business (e.g. trips,
supplies, office rent, etc.) Numbers don't need to be exact, just in
the ballpark.
A point of particular concern is also to avoid being taxed on my
personal income by the state of California once, and if, I leave
California. That is something it might happen, under certain
circumstances that I have to understand better, if I open a California
LLC.
Thank you
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