I have a business idea and business name picked out, and I am currently considering forming an LLC. I live in the state of Michigan. Does anyone know what the legal consequences would be if I were to form this Limited Liability Company, but not actually CONDUCT any business for a year or two down the road.
Would I need to file quarterly & yearly tax forms and/or have meetings when I have not yet opened the doors on the business?
Why not incorporate the business in some other state than Michigan?
What with the punitive taxes, I`d think it would hurt rather than help
the business. I`m not an attorney, but I seem to have heard that you
can incorporate in any state in the union, and do business from a
different location: does anyone know about the advantages of this? Is
it legal? Is it a way to avoid being smashed flat by the government of
With the little research that I have done, it is legal and possible to incorporate a business in another state. I believe Delaware is very popular along with Nevada. As far as Michigan goes, a Limited Liability Company is the way to go for my situation.
Back to my original question: Does anyone have any in sight into what happens if you form a corporation or LLC, but do not conduct any business for a year or two. Would I still need to submit quarterly and yearly tax forms and/or conduct the required meetings? Or does the company not technically exist until you conduct your first sale or transaction?
Any advice or opinions would be greatly appreciated.
Does anyone know if there is a way to legally RESERVE a business name without forming a corporation then?
Which is it, LLC or Corp?
I should have phrased it as follows:
Does anyone know if there is a way to legally RESERVE a business name without forming a separate legal entity? (Strongly leaning towards an LLC)
Currently my present job is going to support me through 2008 and possibly early 2009. I would like to spend this year planning certain aspects of the business, including designing a website, working on a logo and other details. Before I can do any of this I need to secure a name. I would like to avoid the hassle of filing taxes and dealing with those legal issues until I actually launch the business.