Forums: Discussions for entrepreneurs and small business.

Me and some partners are getting ready to start a holding company, our conundrum is that none of us is sure if we sshould go for a Corporation or an LLC for the holding company.  Does anyone have any experiance with this?

It might be interesting to see it.  We are fairly new to the idea of starting a company.  We started as an investment club, and we want to continue to operate that way but as a company that invests in smaller companies and / or projects.

I`ve read a lot of information online, but mostly they all say the same thing and none of them are real detailed.  So thanks for the offer.

Yes it is true that you can file in any state you want, you need to consider the rules that apply. If you are operating your business in Your state, let`s say California, and you pay to file that corporation in Delaware or Nevada, you will be required to file additionally in California, and still be subject to all the same California Laws, including paying state taxes in California.

By operating I mean: have a bank account, Address, telephone or some other significant business presence in California.

There are great reasons to consider using a properly structured corporation in Nevada, like lower taxes, better liability protection, and possibly even protecting assets; but, you need to know if it fits in what you are doing.

This is probably a deeper subject than needs to be aired openly in this forum, you can contact me by email to ask questions, or to assess your needs and goals. My Name is richard and the domain is owelesstax.com

As far the the Delaware/Nevada comparison: Delaware is a better state if you intend on being publicly traded, Delaware Legislature has focused on rules and benefits for fortune500 companies. That is why the majority of the Fortune 500 companies are filed in Delaware. If you are not a fortune 500 Company Nevada would be the better state (if you can comply with the rules). Nevada has focused on Private Businesses, and has written it`s rules to benefit private corporations.