Forums: Discussions for entrepreneurs and small business.

Hi,

I am looking at startup as a C-Corp in deleware and owning multiple business in diffrent states.

Right now I am going to be having business income possibly in FL and IL

I guess where I am just a little confused with is how to operating in FL or IL and but yet have a bank account in Delware and how it kinda works tax wise and how the money generaly flows to work correctly?

Pay everything from a Deleware Bank account including employee`s? Get diffrent Bank accounts in the diffrent states and then write a check or make a deposit into DE?

How Does that work out? Does anyone better than me have a clue?

Yes, the ones who would have a clue would be your attorney and your CPA.

As far as banking, that would be something convenient to you. Your attorney, your CPA, and the state of Delaware will gladly accept a legitimate check drawn on any bank in the USA.

You might also want to look for a business partner. This thing might get even more confusing as it goes along.

Scott Reynolds

Why pay a partner just outsource and it will be cheaper. Accounting generaly is not that complicated and once everything is setup correctly it won`t be all that confusing.

Your # 1 source for legal issues regarding the business operations of a corporation in various states, will be an attorney. I do agree that each state stands alone and that if you incorporate in Delware - you might have to register as a foreign corporation in those other states.

A CPA/accountant can help you understand the tax and accounting consequences of running a corporation. It is very important to understand this up front. I disagree with dblclik. "Accounting generally is not that complicated...." You must understand the specific accounting requirements for the type of entity that you operate. I have seen major problems arise when a corporation operates on paper as if it were a partnership. And then when it is time to prepare the corporate tax returns - I discover the problems! And in the  cases that I have seen recently, the bad accounting translates into more taxes due at year end. It is better to consult with the professionals and maintain a good relationship with a CPA so at tax time there are few surprises!

Dblclik,

I suggested a partner because your question seemed to indicate you might be getting in over your head. You can`t outsource BI.

I have worked with multiple companies in multiple states for years. Set up your bank account in whatever state is more convenient for you, usually the state you live in. If possible try to use a national bank that has locations in both states, that way you can conduct business in whichever state you are in at the time.

For tax purposes it does not matter if your bank is in a different state than your business. Your taxes are tracked by your EIN, not your address.

I would however have a seperate account for each business. You should never co-mingle business funds or personal and business funds.