How to move (or not move) an LLC from Illinois to New Mexico?
Why not just leave it as is and register as foreign entity in New Mexico? You won't avoid the gross receipts tax, but other than that - everything stays as is. Unless Illinois has some taxes that you would otherwise not pay - just leave it there.
Citation? Please go looking for yourself, it should be easy for a curious mind to do.  How many jobs were lost to just china?  In rochester, ny alone, kodak has big investments and production moved to china.    Now, take xerox they are outsourcing jobs to india.  software and engineering, you get transfered and go work for the indian company or cya.  Look at Delphi, they are in Juarez mexico big time.  Search out the trade $, we trade large w/ these countries and more.  I don't mind trading but it should be balanced.  So much of them buying here and so much us buying there.  There are certain sectors of higher paying manufacturing jobs that are gone to not just to china but also mexico and india.  What jobs replaced them?    Of greater concern should be the stagnant wages of the last 30 years. This very topic was the subject of a question on workplace SE https://workplace.stackexchange.com/questions/8996/what-can-relocation-assistance-entail TL/DR;  From tax publication 521 - Moving expenses table regarding how to report IF your Form W-2 shows... your entire reimbursement reported   as   wages in box 1         AND you have... moving expenses    THEN... file Form 3903 showing all allowable  expenses,* but do not   show any   reimbursements. There are tax implications Covered in tax publication 521 - Moving expenses and Employers tax guide to Fringe Benefits related to moving expenses. From the Employers View: Moving Expense Reimbursements This exclusion applies to any amount you directly or indirectly give to an employee, (including services furnished in kind) as payment for, or reimbursement of, moving expenses. You must make the reimbursement under rules similar to those described in chapter 11 of Publication 535 for reimbursement of expenses for travel, meals, and entertainment under accountable plans. The exclusion applies only to reimbursement of moving expenses that the employee could deduct if he or she had paid or incurred them without reimbursement. However, it does not apply if the employee actually deducted the expenses in a previous year.   Deductible moving expenses.   Deductible moving expenses include only the reasonable expenses of: Moving household goods and personal effects from the former home to the new home, and Traveling (including lodging) from the former home to the new home. Deductible moving expenses do not include any expenses for meals and must meet both the distance test and the time test. The distance test is met if the new job location is at least 50 miles farther from the employee's old home than the old job location was. The time test is met if the employee works at least 39 weeks during the first 12 months after arriving in the general area of the new job location. For more information on deductible moving expenses, see Publication 521, Moving Expenses. Employee.   For this exclusion, treat the following individuals as employees. A current employee. A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Exception for S corporation shareholders.   Do not treat a 2% shareholder of an S corporation as an employee of the corporation for this purpose. A 2% shareholder is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, but do not treat the benefit as a reduction in distributions to the 2% shareholder. Exclusion from wages.   Generally, you can exclude qualifying moving expense reimbursement you provide to an employee from the employee's wages. If you paid the reimbursement directly to the employee, report the amount in box 12 of Form W-2 with the code “P.” Do not report payments to a third party for the employee's moving expenses or the value of moving services you provided in kind.  From the employees view: The not be included as income the expenses must be from an accountable plan: Accountable Plans To be an accountable plan, your employer's reimbursement arrangement must require you to meet all three of the following rules. Your expenses must have a business connection – that is, you must have paid or incurred deductible expenses while performing services as an employee of your employer. Two examples of this are the reasonable expenses of moving your possessions from your former home to your new home, and traveling from your former home to your new home. You must adequately account to your employer for these expenses within a reasonable period of time. You must return any excess reimbursement or allowance within a reasonable period of time. Also what is interesting is the table regarding how to report IF your Form W-2 shows... your entire reimbursement reported   as   wages in box 1         AND you have... moving expenses    THEN... file Form 3903 showing all allowable  expenses,* but do not   show any   reimbursements. I would just create a single liability account to represent the loan, starting with a $0 balance. Then, create a transaction in which the amount of the loan moves from the liability account into your savings account. As you pay the loan off, you'll create new transactions that move money from whichever account you're using to pay it off into your liability account. You need to first visit the website of whatever state you're looking to rent the property in and you're going to want to form the LLC in that particular state. Find the Department of Licensing link and inquire about forming a standard LLC to register as the owner of the property and you should easily see how much it costs. If the LLC has no income history, it would be difficult for the bank to allow this without requiring you to personally guarantee the loan. The obvious benefit of protecting yourself with the LLC is that you protect any other personal assets you have in your name. Your liability would stop at the loan.  The LLC would file its own taxes and be able to record the income against the losses (i.e. interest payments and other operating expenses.). This is can be beneficial depening on your current tax situation. I would definitely recommend the use of a tax accountant at that point.  You need to be sure you can really afford this property in the worst case scenario and think about market leasing assumption, property taxes, maintenance and management (especially if you've moved to another state.) "the state of New Mexico provides guidance in this exact situation. On page 4: Gross receipts DOES NOT include: Example: When the seller passes tax to the buyer, the seller should   separate, or “back out”, that tax from the total income to arrive at   ""Gross Receipts,"" the amount reported in Column D of the CRS-1 Form.   (Please see the example on page 48.) and on page 48: How do I separate (“back out”) gross receipts tax from total gross receipts?  See the following examples of how to separate the gross   receipts tax:  1) To separate (back out) tax from total receipts at the   end of the report period, first subtract deductible and exempt   receipts, and then divide total receipts including the tax for the   report period by one plus the applicable gross receipts tax rate.  For example, if your tax rate is 5.5% and your total receipts    including tax are $1,055.00 with no deductions or exemptions, divide   $1,055.00 by 1.055. The result is your gross receipts excluding tax   (to enter in Column D of the CRS-1 Form) or $1,000.  2) If your tax   rate is 5.5%, and your total gross receipts including tax are   $1,055.00, and included in that figure are $60 in deductions and   another $45 in exemptions:  a) Subtract $105 (the sum of your   deductions and exemptions) from $1,055. The remainder is $950. This   figure still includes the tax you have recovered from your buyers.  b) Divide $950 by 1.055 (1 plus the 5.5% tax rate). The result is   $900.47.  c) In Column D enter the sum of $900.47 plus $60 (the amount   of deductible receipts)*, or $960.47. This figure is your gross   receipts excluding tax." The LLC portion is completely irrelevant. Don't know why you want it. You can create a joint/partnership trading account without the additional complexity of having LLC. What liability are you trying to limit here? Her sisters will file tax returns in the us using the form 1040NR, and only reporting the dividends they received, everything else will be taxed by Vietnam. You'll have to investigate how to file tax returns there as well. That said, you'll need about $500,000 each to invest in the regional centers. So you're talking about 1.5 million of US dollars at least. From a couple of $14K gifts to $1.5M just by trading? I don't see how this is feasible. You need to redomesticate it. Usually that involves filing Articles of Dissolution with your current jurisdiction of Org and Articles of Incorp or domestication with the new state. Note that there are some states that are not open to redomestication (and Cali always tends to be an oddball).  You can probably call up the Secretary of States' offices in both jurisdictions and someone will give you the heads up about what to file. Google search could help. Also a CO lawyer could probably do this for about $1k.  Another way around this might be to form a CO LLC and then merge the CA LLC into the surviving CO. In the event of both a redomestication or merger, you want to check your org docs and any and all outside contracts. Redomestication/merger can trigger change of control provisions that may open you up to penalties or termination of those contracts.   As always the best legal advice I can give on Reddit would be to find a lawyer for this. Can he use an existing credit card in his name for all his business expenses, or does that pierce the corporate veil? That would be a question to a lawyer, since there's no definitive answer but rather circumstantial. Generally it is safer to separate the finances completely than to try and guess what the court would rule if it comes to that. It is not hard to get a separate card for a LLC (especially if it is a sole proprietorship). We are going to buy a house soon, so I don't want any extra inquiries. I guess it depends on the bank and the type of card. My Citi business card doesn't show up on my personal credit report.