Aman Singh Badyal's Answers

What are the tax implications(pros and cons) of DE LCC operating in California with CA state qualification?

If your question is what are the pros and cons of using a DE LLC rather than a CA LLC, then I would agree that there really are no pros (from a tax perspective) if you are operating in California. The downside of using a DE LLC is that you are subject to DE franchise taxes (a small amount of money, but could be avoided by using a CA LLC). You would be subject to tax in California in the exact same manner as would a CA LLC. From a non-tax perspective, the only potential pro is that if...

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Be a co-owner of LLC as a foreign nationality

You can own an LLC, however, I usually advise my foreign clients against doing business in the U.S. through an LLC as it will subject them to U.S. taxing jurisdiction. You need to consult with a tax advisor regarding your specific circumstances, but generally speaking foreign individuals prefer to do business in the U.S. through a corporation.

How can I sell my rental house without tax penalty?

Because you own the house as a rental property, you can do a tax-deferred section 1031 exchange. However, you would have to acquire another real estate asset that you use for business/investment purposes. Also, please be advised that you cannot simply sell the house and buy another house. You generally have to engage the services of a section 1031 facilitator. On the other hand, if you (and/or you and your spouse) live in the home for 2 years, you could potentially sell it and avoid taxes...

I am opening up a food corner store? Do I need to incorporate the store's name?

You don't generally have to form an LLC or corporation to start a business. However, you would be well advised to form an entity that limits your personal liability prior to beginning operations of the corner store. Without an LLC or corporation, you would be personally liable for all liabilities of the business (from vendor contracts to slip and falls to product liability issues). In any business where you are dealing with the general public, the need for an LLC or corporation is...

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Hi,I want to start a subsidary IT services company in Wisconsin state &work with other office in India.Please help me to setup.

The answer to this question really depends on the specific facts and circumstances. You would need to consult with a tax expert prior to setting up your U.S. entity. Some of the important questions: Are you in a services business or selling goods? Will you have U.S. employees? If you are providing services directly from India, you may be able to avoid U.S. taxes because service income is sourced to where the services are provided. The sale of goods in the U.S. has a different set...