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Browse: Home / WORK / Business

My business partner and I are incorporating our online business. We need to know the best start to inc?

bdavis1598: My business partner and I are incorporating our online business. We need to know the best start to inc?
He lives in California and I live in Texas. We have an online consulting business and do most of our work within the U.S. Do we have to pay both California and Texas state taxes? Is it best to start an llc or an inc?

Answers and Views:

Answer by Jay Leno
inc and you have to pay both

Answer by Business Sarah
You need to pay state taxes in the state in which you form your corporation or LLC. If you will do business in both states, you’ll need to then file as a foreign corporation in the other.

Whether its best to start an LLC or a corporation is a decision best made by weighing the pros and cons of each entity type against your specific needs — you’ll have a unique set of priorities, and you’ll select the entity type that best fits those priorities. I’ve included a link to get you started working through that.

Good luck!

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