Changing the address of an LLC and tax requirements

Question

I'm neither a US citizen nor do I reside there. I have a single-member LLC registered in the state of Wyoming, US with a Wyoming virtual office address and an EIN. I'm not satisfied with the services of this virtual office provider and am looking to change my address.

My question is if I change the LLC's address to a state outside Wyoming, will I be taxable as per that state's tax rules? I've seen several non-US owned Delaware Corporations using Californian street addresses.

If it matters I sell software products online to clients all over the world and I incorporated in US for the choice of payment gateways offered.

Answer 1

Obviously there are a lot of unknowns here, and it appears that you're a holder to the belief that having a US-based LLC makes things other than tax evasion easier on you, but I'll try it nevertheless.

There are 50 States in the US, and each has their own rules about taxation in general, and taxation of LLCs in particular. Most of them treat LLCs in a different way than they would treat a Corporation, but some don't.

California, specifically, would tax you if you have a California address, be it a corporation or a LLC.

If it matters I sell software products online to clients all over the world and I incorporated in US for the choice of payment gateways offered.

There's nothing whatsoever that you can do as an LLC that you cannot do as an individual and anyone saying otherwise is lying. LLC is purely for limiting your liability, which if you're a single owner selling products of your own work - is meaningless for you. Any money you spend on the LLC is probably wasted.

However, since it is a legal issue, I suggest talking to an attorney who'd advise you whether an LLC is really needed in your case.

Answer 2

The short answer is, if you change states where your LLC is based, you will be treated according to the state tax rules for LLCs wherever it is you choose to go.