Q: I know this question is asked a lot but I have a variation of it.
I have an 100% online business (no shipping or physical products). I live in California but I am originally from Florida. For tax purposes, should I LLC in Florida and file as a foreign entity in California? Will this help me save on taxes? How would home based business deductions work if I opt for this set up? *Also note that I do receive some 1099s from gig work completed in California.
A:
This is not a legal question. This is a small business question that should be asked to your small business lawyer.
If you do not have a small business lawyer you should get one--before you make mistakes that cannot be corrected without spending lots of money.
Here is some free advice offered for the last 41+ years to many people starting or operating small businesses:
The main difference between successful small businesses and those that fail within a relatively short period of time is good legal advice. The owners of most successful small businesses understand that retaining an experienced business lawyer and paying modest legal fees to advise them--from day one—may end up saving them thousands of dollars later when they must fix unnecessary disasters that could have been avoided.
Hiring a good business lawyer and then calling upon them occasionally to help you avoid the many minefields you will stumble into beats asking for free business advice here on Justia. Why not try it and see what I mean?
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
