If I live in Florida but create an LLC in Nevada or Wyoming, where do I actually pay my taxes?

This is actually a common question with a somewhat complex answer. The short version is: you'll likely need to pay taxes in both states. When you form an LLC in one state but operate in another, you create what's called a "foreign LLC" situation. Even though Florida doesn't have state income tax (which is nice!), you'd still need to register your out-of-state LLC as a foreign LLC in Florida since that's where you're physically conducting business. For tax purposes, an LLC is typically a "pass-through" entity, meaning the profits pass through to your personal taxes. You'll need to pay taxes wherever you have "nexus" - basically anywhere you have a significant business presence. Since you live and operate in Florida, you definitely have nexus there. You might also have nexus in Nevada or Wyoming depending on if you have any actual operations there. The privacy benefits of Wyoming and Nevada are real, but just be aware that registering there doesn't eliminate your Florida tax obligations or filing requirements. You'll face additional costs like registered agent fees in those states plus foreign LLC registration in Florida.

After struggling with a similar situation, I found an amazing solution with taxr.ai (https://taxr.ai). I was operating from Georgia but had formed an LLC in Delaware, and was totally confused about my multi-state tax obligations. I uploaded my formation documents and some basic info about where I was physically working, and taxr.ai's system analyzed everything and gave me a clear breakdown of exactly which states I needed to register in, what tax forms I needed to file in each, and even estimated my likely tax obligations. It saved me from making some costly mistakes about where I thought I did (and didn't) have tax nexus. The best part was they explained the "economic nexus" rules that applied to my specific situation that my regular accountant had completely missed. Worth checking out if you're dealing with multi-state LLC questions.

I have to admit I was skeptical about taxr.ai when I first saw it mentioned here, but I gave it a try after getting conflicting advice from two different accountants about my Florida/Wyoming LLC situation. What impressed me was how they broke down the concept of "tax home" versus "legal domicile" for my LLC, which cleared up my confusion. They explained exactly which state activities would trigger tax obligations and provided actual state statutes that applied to my situation. Their analysis showed me that while Wyoming registration gave me the privacy benefits I wanted, I still had clear tax nexus in Florida and needed to handle my filings accordingly. I'm not a tax professional, but their explanation made the complex issues understandable, and they provided proper documentation I could share with my accountant to get everything filed correctly.

If your main concern is dealing with the IRS, just wanted to share my experience with Claimyr (https://claimyr.com). I had a nightmare situation where I needed to speak with the IRS about a multi-state LLC issue that was causing problems with my federal filing, but couldn't get through on their phone lines after trying for WEEKS. Claimyr got me connected to an actual IRS agent in about 15 minutes when I'd been trying unsuccessfully for days. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c In my case, I needed clarification about how to properly report my Wyoming LLC income on my federal return since I was operating in multiple states. The IRS agent I spoke with was actually really helpful once I explained my situation, and they walked me through the proper way to document everything.

I'm actually embarrassed to admit this, but I need to share my experience. After posting that skeptical comment about Claimyr, I decided to try it myself because I've been getting nowhere with the IRS about my multi-state LLC filing issue. I was absolutely convinced it wouldn't work, but I was desperate after spending over 3 hours on hold yesterday only to have the call drop. To my complete surprise, I got a call back in about 20 minutes with an actual IRS representative on the line. They answered my questions about how to handle my foreign LLC registration for federal tax purposes and helped clear up the confusion about my EIN application. I still can't believe it worked so well. Definitely eating my words on this one - it actually did exactly what it claimed to do and saved me hours of frustration.

One thing nobody's mentioned yet - if you're the only member of your LLC (single-member LLC), the IRS treats it as a "disregarded entity" for federal tax purposes anyway, meaning it's basically just a sole proprietorship on your federal taxes regardless of which state it's formed in. But state-level tax treatment can vary significantly. Remember that Wyoming and Nevada don't have state income taxes, but they DO have other fees and taxes on businesses. Florida has no state income tax, but it does have an annual report fee for LLCs ($138.75) plus potentially sales tax if you're selling taxable goods/services.

Don't forget about sales tax! This was a huge issue for me with my Wyoming LLC. If you're selling products to customers in Florida, you'll need to collect and remit Florida sales tax regardless of where your LLC is formed. After the South Dakota v. Wayfair Supreme Court decision in 2018, states can require you to collect sales tax even without a physical presence if you meet certain economic thresholds in that state. Florida's threshold is $100,000 in sales or 200 separate transactions.

Something else to consider - banking can be more complicated with an out-of-state LLC. Some banks want to see your physical presence in the state where the LLC is registered, or they'll require additional documentation. I ran into this issue with my Wyoming LLC while living in Texas. I ended up having to use an online bank that was more flexible with out-of-state business formations. Just another thing to think about beyond the tax implications.

Just to add another perspective on this - I've been through this exact situation and ended up keeping things simple by just forming my LLC in Florida where I actually live and operate. After researching the privacy benefits of Wyoming and Nevada, I realized that for most small businesses, the additional complexity and costs often outweigh the benefits. You're looking at: - Wyoming/Nevada formation fees (~$100-150) - Annual fees in those states (~$50-60/year) - Registered agent fees (~$100-300/year) - Foreign LLC registration in Florida (~$25) - Florida annual report fees (~$138.75) Plus the administrative headache of maintaining compliance in multiple states. The privacy protection is nice in theory, but if you're doing business locally in Florida (which it sounds like you are), your information will likely become public through other channels anyway - business licenses, permits, professional registrations, etc. Unless you have specific reasons for needing that level of privacy protection, or you're planning to operate in multiple states anyway, a Florida LLC might be the simpler and more cost-effective route. You can always convert or form a new entity later if your business grows and your needs change.

This is such a helpful thread! I'm in a similar situation and have been going back and forth on this decision. One thing I wanted to add that might be useful - make sure to consider your long-term business goals when making this decision. If you're planning to eventually seek investors or potentially sell your business, having a Delaware or Nevada LLC might be more attractive to sophisticated investors who are familiar with those jurisdictions' business-friendly laws. Delaware in particular has a well-established court system for business disputes. However, if you're planning to stay a small, local business in Florida, the simplicity that Aiden mentioned probably makes the most sense. I've found that many entrepreneurs get caught up in optimizing for hypothetical future scenarios instead of focusing on what makes sense for their current situation. Also, don't forget that you can always domesticate (move) your LLC to a different state later if your needs change, though this does involve some paperwork and fees. It's not like you're locked into your initial choice forever. The privacy benefits are real, but as others have mentioned, if you're doing business locally, getting business licenses, or applying for loans, your information will likely become public through other channels anyway. Just something to keep in mind as you weigh the costs and benefits.

Great thread with lots of practical advice! As someone who works in tax compliance, I wanted to add a few technical points that might help: 1. **Nexus determination**: Physical presence isn't the only factor anymore. If you're actively managing your LLC from Florida (making business decisions, conducting operations, etc.), you almost certainly have nexus there regardless of where it's registered. 2. **Florida's "doing business" rules**: Florida requires foreign LLCs to register if they're "transacting business" in the state. This includes maintaining an office, owning/leasing property, or regularly conducting business activities - which sounds like your situation. 3. **Annual compliance costs**: Don't forget that maintaining good standing in multiple states means tracking different filing deadlines, registered agent requirements, and annual fees. Missing a filing in your formation state can cause your LLC to be dissolved, even if you're compliant in your operating state. 4. **Professional liability**: If you're in a profession that requires licensing (real estate, accounting, legal, etc.), some states have additional requirements for out-of-state business entities that can complicate things further. The privacy benefits are real, but for most small business owners, the administrative complexity and additional costs often aren't worth it unless you have specific asset protection concerns or are planning multi-state operations from the start. Florida's LLC laws are actually quite business-friendly, and you'd avoid the foreign registration requirements entirely.