So last year I set up my LLC in Wyoming because some blog said no state income tax and low fees. I run a tiny e-commerce thing from my apartment in Louisiana. Just got a letter from the Louisiana Dept of Revenue saying I owe state taxes anyway. Was the whole Wyoming thing pointless? I'm out like $700 in extra fees and annual reports for nothing.
LLC Taxes
I thought forming an LLC elsewhere would save me taxes
Yeah, that blog lied to you. You pay taxes where you actually live and work, not where the LLC is registered. Wyoming only helps if you're actually operating there or have a physical presence.
Lol the ol' Wyoming LLC myth. Classic. Sorry OP, but this gets posted every other other week.
Not pointless if you ever get sued, I guess? Wyoming has strong privacy laws. But for taxes? Nah.
Privacy wasn't even on my radar. I just saw '0% state income tax' and clicked buy. Feeling pretty dumb right now.
How much did you actually think you'd save? If your e-commerce is tiny, your Louisiana tax bill is probably peanuts compared to the $700 you alreeady flushed.
Also — and I'm not a lawyer — but if you're the only member, a foreign LLC might trigger Louisiana registration requirements anyway. So you might have double filing fees now.
This is why I just file as a sole prop in my own state. Boring but I sleep fine.
quietstorm thst's fine until you get a big client who won't sign without an LLC. Then you're back here asking the same question.
OP, did you at least get a registered agent in Wyoming? Because if not, you might be in non-compliance there too.
Ugh. Yes I have a registered agent. Another $125 a year. I'm going to dissolve the Wyoming one and just register in Louisiana. Lesson learned.
At least you caught it before the annual report fee hit again. Silver lining.
Honestly this whole thread is making me feel better about my boring sole prop.