I have a professional affiliation s. Corp in Florida, and my colleague has a s Corp in GA. We started working on a project together that has taken off, and we want to form an LLC this year and pay our s Corp to perform the work as contractors. Is that kosher? I’m going to set up the entity here in Fl since I have a physical business address.
Not an expert so still learn more. That said, this is what Matt & Mark personally do and talk about all the time. They just released an S-Corp episode so you should listen to that. The owner of this new LLC would be your S-Corp and your colleague’s S-Corp. The new LLC has liability protection from its own operations protecting its owners from liability, in this case two S-Corps. Starting the LLC in the state where the business will be performed is a good idea as that state will want to tax the operations in that state. If your operations are in Georgia, but have a physical address in Florida, it gets more complicated and you would need to determine whether it is worth doing that as you would have to register in Georgia as a foreign corp if doing business in Georgia. If it’s all virtual, that might be different and Florida would work. NBA and other professional athletes need to file taxes in each state they earn money - so do you.
Covered on today’s show. 12/15/22. Thanks for the post! Please share and give us a 5 Star on your favorite portal if you would. Thanks again and please continue to listen. Mark.