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3 Replies Last post: Mar 30, 2008 7:44 AM by LUCKIEST

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Ficticious business license for out of state LLC?

Mar 29, 2008 11:06 PM

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kenrobertson 1 posts since
Mar 29, 2008

I am in CA and was thinking about registering an LLC in Delaware, mainly because of the cheaper annual tax (CA is $800, believe Delaware is $200). This is just going to be a small online business, so an extra $600 would be nice to save. I am going to be having multiple online services, so I want the protection of an LLC, but I also wanted multiple sub-businesses registered under my main business.

If I register my business in Delaware, can I file a ficticious business license here locally in CA? Do I need to do anything to register my LLC within CA beforehand? Since ficticious business licenses are just at the county level, I am guessing that it wouldn't matter, but wanted to make sure.

I will be eventually consulting an attorney once I get closer to setting things up, but was wanting to first get the business registered, accounts opened and all, then would be filing the ficticious business licenses once I'm ready to actually open up.

Thanks for any help you can offer!

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Mogul

dublincpa 165 posts since
Jan 29, 2008

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1. Re: Ficticious business license for out of state LLC? Mar 29, 2008 11:58 PM

Typically you need to register as a Foreign (out of state) LLC with the state at a cost equal to or greater than or equal to or greater the cost of a domestic (in state) LLC plus you have to pay Delaware. I didn't have a chance to look at CA, but that is what you would look for to determine the cost.

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Mogul

Lighthouse24 2,396 posts since
Oct 10, 2007

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2. Re: Ficticious business license for out of state LLC? Mar 30, 2008 12:07 AM

Welcome to the community. You can verify this with the CA Secretary of State - Business Programs Division (or the Board of Equalization or your attorney), but I'm pretty sure that a foreign LLC (i.e., one formed in a state other than CA) still has to register with the state and pay a minimum tax of $800 a year (plus a fee based on the annual income of the entity) if a managing member of the LLC is a CA resident and/or if the LLC conducts any business in CA. While there may be other ways to achieve your objective, I don't think creating a Delaware LLC and registering it in CA will save you anything. Hope that helps. Best wishes.

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SCORE

LUCKIEST 7,938 posts since
Aug 6, 2007

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3. Re: Ficticious business license for out of state LLC? Mar 30, 2008 7:44 AM

Fictitious business license for out of state LLC
Any body going into business should have An Accountant, A Lawyer
and maybe an Insurance Broker.
Yes it costs money for the professional BUT you have to spend money to
make money and over time will save you money and problems,
Do you know about SCORE?? SCORE is FREE.
LUCKIEST

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