Newbie Asks: Banking for best tax benefits.

[thatcher]

Hey all -

Rather new to affiliate marketing, and the business is registered in Delaware. My partner and I currently live in PA (where it is a foreign entity LLC).

Now that checks are starting to come in...How would you set up the business account for the best tax benefits? Would you bank in PA, set up an account in Delaware, go local, international, etc..

Again, this might be kind of a dumb question, but I'd love some feedback.

 

[phil9922]

If the business is registered in Delaware, it doesn't matter where the bank account is opened. Last I knew, Delaware has no state taxes, so you'll save a bunch of money by keeping the business registered there.

 

[HairyHun]

If the business is registered in Delaware, it doesn't matter where the bank account is opened. Last I knew, Delaware has no state taxes, so you'll save a bunch of money by keeping the business registered there.

not as glamourous as some caribbean island tho...

 

[phil9922]

not as glamourous as some caribbean island tho...

True but a lot of those banks aren't insured like banks in the US. To be tax-free, he'd have to register an offshore company as well as open an international account. That could be a pain depending on the amount of paperwork and ID verification the foreign countries require. And either way, he'd still have to pay taxes on the $ when he transferred it back to a bank in the USA.

I may be a little off but I'm pretty sure that's how it goes. Offshore accounts are great for savings but if he's going to be sending all the money back into the USA right away anyways, it seems pointless.

 

[AdExhibitJason]

Here is what I would suggest. Take all your local banks, find one that is also in Delaware. Then make an account there and have the account registered with your Delaware address.

 

[Gumby!]

What did your accountant suggest?