Abacus Vs other CPA

It's just that abacus has no idea when it comes to trucking and the llc. You can set up an llc in any state, but you have to a presence there in that state. A lot of times companies just have a po box at like a ups store to show a presence in that state and eventually as they grow they put an office there.

This is from nolo, a legal encyclopedia.
Question:
Can I form a limited liability company (LLC) in a different state than the one in which my business will operate?


Answer:
business is pretty much free to form a limited liability company (LLC) in any old state. But you may still need to qualify your LLC to do business in your home state -- and this means you'll have to file additional paperwork and pay additional fees. Most smaller LLCs that will operate in only one state also form in that state, to avoid these hassles.

Be ready for some state tax complications if your LLC does business in a state that's different from the state where all of its members live. For one thing, the LLC members might have to pay personal income taxes in the other state on LLC income. (At best, you might get credit for those taxes in your home state and not have to pay twice. At worst, you might have to pay taxes you wouldn't have had to pay at home.)

Other state taxes vary wildly from state to state, and might influence your choice of location for an LLC. An LLC -- like any business -- has to pay franchise taxes; sales and use taxes; other transaction and excise taxes; and employment, property, and transfer taxes.

The bottom line is that some states will be a better home for your LLC than others. You can sometimes make these differences between states' laws work for you, but you absolutely have to get the tax stuff right. This is one of those times when you should see a tax professional -- or maybe one in each state where you might operate your LLC -- before you start.

Also, keep in mind that not all states allow all businesses be organized as LLCs. For example, California won't let some professionals, such as accountants, architects, and massage therapists, form LLCs. This might affect where you can form your LLC and where it can operate.

 

I'm my state, I had to have an LLC set up there as well since that's where I reside. Then I had to pay state business taxes on every load that I ran that was intra-state. All the inter-state loads were exempt from the state business tax. Since that's where I reside and those are the rules I'm governed under.

 

I'll try and make this clear. You are a single member llc that has formed the llc in a state that you do not reside in. Because of that, most states requires you to set up what is called a foreign llc since your the only member and work in the business. Your home state usually requires you to register your business as well. You are a small business remember.

Yes Missouri will not charge you the franchise tax or the corporation tax unless you elect to be treated as a subchapter s for tax purposes.

I've been back and forth with attorneys and cps's with regards to this question. Now the state you live in may not require you to pay any kind of business tax, but keep in mind you need to do the proper research to make sure.

What it comes down to is your business presence which is your home address or an office if you have one, that's usually the governing laws that dictate how your business is ran or treated.

What state do you live in?

 

Oh yeah they overcharged for that dang llc, wa state is $200 to file. Just it takes a couple of days for it to come through, whereas abacus gets you the one from Missouri in like 5 minutes.

 

Yeah, they did the same thing to me. They tell you at the last minute that you need one and oh hey, for $450 we can get you one in just 24 hours. Now that you have one, you can't get your money until you open an account in your llc's name and oh look, we have back of America right here to take your money.....I mean help you out with that.

Meanwhile they don't tell you that it can take 2-3 weeks from the time they get your direct deposit info before it shows up in your back account, until then, good luck getting the money off of your comdata card.

 

Like I said, each state is different in there requirements. You LLC shouldn't be tied to your ss# it should be tied to your EIN# that they set up with the LLC.

I actually went in and talked with Abacus yesterday and explained to them exactly what I said here. There response was first, "well how did the state find out you were operating a business?" Then it turned into, "Yeah, there are a few states we know of that can be difficult, but most of the time drivers just fly under the radar because they aren't big enough to worry about. West cost states are some of the more difficult states." After they said that to me, I flat out asked for a refund of the filing fees and for the disolve my LLC in MO. They said I SHOULD see it this Friday. We will see.

My recommendation, which is what I had to do, find a local attorney that understands the LLC laws of your state. Most of them will do a free consult over the phone, otherwise it is worth paying for an hour of there time.

Check with your state's department of revenue or taxation at least. Just because someone you know hasn't had issues or because Abacus "says it's ok" isn't an excuse that holds up in front of the department of revenue.

Now on a quick search (ok, in my world a quick search is usually an hour of time), there is an article publised by a Dysat Taylor law firm about the Kansas law that was passed in 2013 regarding "Pass-Through" entities regarding state income tax. There website is: http://www.dysarttaylor.com/news-ev...law-no-state-income-tax-pass-through-entities

Seeing how they wrote an article about this subject and in there example they talk about businesses set up in MO that operate on Kansas vs. just being set up in Kansas, I would give them call and ask them about this. That would truly be the best and for sure answer. You might find that setting up an LLC in Kansas where you live might benefit you more and it only costs $160 to set up the LLC online in Kansas.

Another source that is usually free is the your local chapter of the SBA or SCORE. They have businesses, law firms and cpa's that offer there help and advice for free to those organizations.

At the end of the day, you might be completely correct that in YOUR situation, having the LLC in MO won't make a difference for you. As with MY situation, Abacus was so far from wrong it wasn't even funny. As the saying use to be in the business world: "Caveat Emptor" - Buyer Beware. www.dictionary.com/browse/caveat-emptor