How low can we go? 30 yr fixed at 3.75% with no fees...

[Crispy3]

I locked with Amerisave a couple of weeks ago @ 3.5 with 6800 credit towards closing for a 624k loan (I was pretty lucky with timing). But I am pretty concerned since I am two days late on releasing contingencies and I still have not gotten underwriter approval yet for the loan.. I keep calling Amerisave everyday for a ETA but they seem to have no clue on when the underwriter would get back to them... 

 

[usctrojancpa]

I locked with Amerisave a couple of weeks ago @ 3.5 with 6800 credit towards closing for a 624k loan (I was pretty lucky with timing). But I am pretty concerned since I am two days late on releasing contingencies and I still have not gotten underwriter approval yet for the loan.. I keep calling Amerisave everyday for a ETA but they seem to have no clue on when the underwriter would get back to them... 

I would have opted to go with Provident versus Amerisave for a purchase (amerisave can be slow).  I'd only use them for refi's.  Keep us posted on the status.  Has the appraisal been done and reviewed?  Have you completed the inspection and gotten the HOA docs?  If so, you can lift all the contingencies EXCEPT for the loan contingency if the seller/listing agent push you.

 

[usctrojancpa]

Good grief,

My present loan is with Provident but as you probably know, they're a really pain in the you know what to get to closing.  You must like
pain?    But $3800 is nice.

I'm not sure if it's the same with all the deals but I was told that once you lock, unless it goes down quite a bit, you're stuck.  Well, locking works both ways.  Maybe if it goes down to the high 2s we'll all be refi'ing again.

To be honest, my experience with Provident was pretty easy.  BHL was a bit more work to deal with since they pass your file along to multiple "processors" during the refi process.  Each have a specific job to do, but some will miss something and then it will get caught later when it is crunch time.  I hate being asked for information I already provided and it happened a few times with BHL.  With Provident, you deal with just 2 people and it was much more smooth. 

My financials are very clean so there wasn't anything out of the ordinary requested.  Maybe I got lucky....

No way could I ever go with Provident....I have way too many things going on with my finances.  Hell, my tax return is over 60 pages.

 

[Crispy3]

I locked with Amerisave a couple of weeks ago @ 3.5 with 6800 credit towards closing for a 624k loan (I was pretty lucky with timing). But I am pretty concerned since I am two days late on releasing contingencies and I still have not gotten underwriter approval yet for the loan.. I keep calling Amerisave everyday for a ETA but they seem to have no clue on when the underwriter would get back to them... 

I would have opted to go with Provident versus Amerisave for a purchase (amerisave can be slow).  I'd only use them for refi's.  Keep us posted on the status.  Has the appraisal been done and reviewed?  Have you completed the inspection and gotten the HOA docs?  If so, you can lift all the contingencies EXCEPT for the loan contingency if the seller/listing agent push you.

yep I've done everything else and released all but loan contingency... but loan contingency is what burned the sellers last time.. (this fell out of escrow) so they have a right to be concerned...

 

[usctrojancpa]

I locked with Amerisave a couple of weeks ago @ 3.5 with 6800 credit towards closing for a 624k loan (I was pretty lucky with timing). But I am pretty concerned since I am two days late on releasing contingencies and I still have not gotten underwriter approval yet for the loan.. I keep calling Amerisave everyday for a ETA but they seem to have no clue on when the underwriter would get back to them... 

I would have opted to go with Provident versus Amerisave for a purchase (amerisave can be slow).  I'd only use them for refi's.  Keep us posted on the status.  Has the appraisal been done and reviewed?  Have you completed the inspection and gotten the HOA docs?  If so, you can lift all the contingencies EXCEPT for the loan contingency if the seller/listing agent push you.

yep I've done everything else and released all but loan contingency... but loan contingency is what burned the sellers last time.. (this fell out of escrow) so they have a right to be concerned...

Just keep the lines of communication open and let them know the status.  As soon as you get conditional approval, that might be when you lift the loan contingency.

 

[johnwlam]

I locked in my refinance with Provident a couple of weeks ago at super conforming at 3.375% with $3700 back.  This goes to cover the fees and prepaid interest and I net about $800, which I can use to pay down principal or just pocket.  I used Provident's calculator to time my refinance.  So long as you have good financials, the calculator is accurate with what they can offer you.  This morning, the same loan will COST YOU $4,400...yikes.

 

[changm55]

Good grief,

My present loan is with Provident but as you probably know, they're a really pain in the you know what to get to closing.  You must like
pain?    But $3800 is nice.

I'm not sure if it's the same with all the deals but I was told that once you lock, unless it goes down quite a bit, you're stuck.  Well, locking works both ways.  Maybe if it goes down to the high 2s we'll all be refi'ing again.

To be honest, my experience with Provident was pretty easy.  BHL was a bit more work to deal with since they pass your file along to multiple "processors" during the refi process.  Each have a specific job to do, but some will miss something and then it will get caught later when it is crunch time.  I hate being asked for information I already provided and it happened a few times with BHL.  With Provident, you deal with just 2 people and it was much more smooth. 

My financials are very clean so there wasn't anything out of the ordinary requested.  Maybe I got lucky....

No way could I ever go with Provident....I have way too many things going on with my finances.  Hell, my tax return is over 60 pages.

haha i am curious to how much u write off... lol...

 

[usctrojancpa]

Good grief,

My present loan is with Provident but as you probably know, they're a really pain in the you know what to get to closing.  You must like
pain?    But $3800 is nice.

I'm not sure if it's the same with all the deals but I was told that once you lock, unless it goes down quite a bit, you're stuck.  Well, locking works both ways.  Maybe if it goes down to the high 2s we'll all be refi'ing again.

To be honest, my experience with Provident was pretty easy.  BHL was a bit more work to deal with since they pass your file along to multiple "processors" during the refi process.  Each have a specific job to do, but some will miss something and then it will get caught later when it is crunch time.  I hate being asked for information I already provided and it happened a few times with BHL.  With Provident, you deal with just 2 people and it was much more smooth. 

My financials are very clean so there wasn't anything out of the ordinary requested.  Maybe I got lucky....

No way could I ever go with Provident....I have way too many things going on with my finances.  Hell, my tax return is over 60 pages.

haha i am curious to how much u write off... lol...

I have several rental properties, various streams of income, short/long term gains on options trading, a 2nd home (where my dad lives), my primary residence, and all my business related expenses.  I think the trading activity takes up 10-15 pages.  The underwriters that had my loan files were probably not happy campers, I was the complete opposite of a vanilla borrower.  There was a lot of email explanations, additional documents that I needed to provide, and several letters of explanation detailing various things.  I write off whatever I'm legally entitled to write off per IRs regulations. 

 

[cubiczirconia]

Good grief,

My present loan is with Provident but as you probably know, they're a really pain in the you know what to get to closing.  You must like
pain?    But $3800 is nice.

I'm not sure if it's the same with all the deals but I was told that once you lock, unless it goes down quite a bit, you're stuck.  Well, locking works both ways.  Maybe if it goes down to the high 2s we'll all be refi'ing again.

To be honest, my experience with Provident was pretty easy.  BHL was a bit more work to deal with since they pass your file along to multiple "processors" during the refi process.  Each have a specific job to do, but some will miss something and then it will get caught later when it is crunch time.  I hate being asked for information I already provided and it happened a few times with BHL.  With Provident, you deal with just 2 people and it was much more smooth. 

My financials are very clean so there wasn't anything out of the ordinary requested.  Maybe I got lucky....

No way could I ever go with Provident....I have way too many things going on with my finances.  Hell, my tax return is over 60 pages.

haha i am curious to how much u write off... lol...

I have several rental properties, various streams of income, short/long term gains on options trading, a 2nd home (where my dad lives), my primary residence, and all my business related expenses.  I think the trading activity takes up 10-15 pages.  The underwriters that had my loan files were probably not happy campers, I was the complete opposite of a vanilla borrower.  There was a lot of email explanations, additional documents that I needed to provide, and several letters of explanation detailing various things.  I write off whatever I'm legally entitled to write off per IRs regulations. 

Anything that you DON'T do USC?

 

[changm55]

Good grief,

My present loan is with Provident but as you probably know, they're a really pain in the you know what to get to closing.  You must like
pain?    But $3800 is nice.

I'm not sure if it's the same with all the deals but I was told that once you lock, unless it goes down quite a bit, you're stuck.  Well, locking works both ways.  Maybe if it goes down to the high 2s we'll all be refi'ing again.

To be honest, my experience with Provident was pretty easy.  BHL was a bit more work to deal with since they pass your file along to multiple "processors" during the refi process.  Each have a specific job to do, but some will miss something and then it will get caught later when it is crunch time.  I hate being asked for information I already provided and it happened a few times with BHL.  With Provident, you deal with just 2 people and it was much more smooth. 

My financials are very clean so there wasn't anything out of the ordinary requested.  Maybe I got lucky....

No way could I ever go with Provident....I have way too many things going on with my finances.  Hell, my tax return is over 60 pages.

haha i am curious to how much u write off... lol...

I have several rental properties, various streams of income, short/long term gains on options trading, a 2nd home (where my dad lives), my primary residence, and all my business related expenses.  I think the trading activity takes up 10-15 pages.  The underwriters that had my loan files were probably not happy campers, I was the complete opposite of a vanilla borrower.  There was a lot of email explanations, additional documents that I needed to provide, and several letters of explanation detailing various things.  I write off whatever I'm legally entitled to write off per IRs regulations. 

Anything that you DON'T do USC?

i tend to prefer the the holdings company path style... for ur rental properties, do u hold it under a REIT? if u dont feel comfy talking about taxes u dont have to respond... i ask cause im not a CPA so everything i do ive learned from rich ppl guiding me, so im always interested in learning new tactics/strategies... i actually learned a few tricks cause of romney (since theres all these pundits out there that wrote articles on how they would have done it via trust funds etc if they were romney)... haha perfectly legal of course... to me, only idiots dont take advantage of it... lol hey no argument there, no one says the tax rate is the maximum u can pay uncle sam, since everybody is always free to willingly pay more on their tax returns if they feel benevolent , right? hahahaha

 

[usctrojancpa]

Good grief,

My present loan is with Provident but as you probably know, they're a really pain in the you know what to get to closing.  You must like
pain?    But $3800 is nice.

I'm not sure if it's the same with all the deals but I was told that once you lock, unless it goes down quite a bit, you're stuck.  Well, locking works both ways.  Maybe if it goes down to the high 2s we'll all be refi'ing again.

To be honest, my experience with Provident was pretty easy.  BHL was a bit more work to deal with since they pass your file along to multiple "processors" during the refi process.  Each have a specific job to do, but some will miss something and then it will get caught later when it is crunch time.  I hate being asked for information I already provided and it happened a few times with BHL.  With Provident, you deal with just 2 people and it was much more smooth. 

My financials are very clean so there wasn't anything out of the ordinary requested.  Maybe I got lucky....

No way could I ever go with Provident....I have way too many things going on with my finances.  Hell, my tax return is over 60 pages.

haha i am curious to how much u write off... lol...

I have several rental properties, various streams of income, short/long term gains on options trading, a 2nd home (where my dad lives), my primary residence, and all my business related expenses.  I think the trading activity takes up 10-15 pages.  The underwriters that had my loan files were probably not happy campers, I was the complete opposite of a vanilla borrower.  There was a lot of email explanations, additional documents that I needed to provide, and several letters of explanation detailing various things.  I write off whatever I'm legally entitled to write off per IRs regulations. 

Anything that you DON'T do USC?

Running a hedge fund.  haha

 

[changm55]

Good grief,

My present loan is with Provident but as you probably know, they're a really pain in the you know what to get to closing.  You must like
pain?    But $3800 is nice.

I'm not sure if it's the same with all the deals but I was told that once you lock, unless it goes down quite a bit, you're stuck.  Well, locking works both ways.  Maybe if it goes down to the high 2s we'll all be refi'ing again.

To be honest, my experience with Provident was pretty easy.  BHL was a bit more work to deal with since they pass your file along to multiple "processors" during the refi process.  Each have a specific job to do, but some will miss something and then it will get caught later when it is crunch time.  I hate being asked for information I already provided and it happened a few times with BHL.  With Provident, you deal with just 2 people and it was much more smooth. 

My financials are very clean so there wasn't anything out of the ordinary requested.  Maybe I got lucky....

No way could I ever go with Provident....I have way too many things going on with my finances.  Hell, my tax return is over 60 pages.

haha i am curious to how much u write off... lol...

I have several rental properties, various streams of income, short/long term gains on options trading, a 2nd home (where my dad lives), my primary residence, and all my business related expenses.  I think the trading activity takes up 10-15 pages.  The underwriters that had my loan files were probably not happy campers, I was the complete opposite of a vanilla borrower.  There was a lot of email explanations, additional documents that I needed to provide, and several letters of explanation detailing various things.  I write off whatever I'm legally entitled to write off per IRs regulations. 

Anything that you DON'T do USC?

Running a hedge fund.  haha

lol technically ur transfer of income to stock equity is by definition a mini-micro fund lol... there are lots of hedge funds that only play with one individuals wealth only and dont play with other ppls wealth, haha ur just not big enough to call "hedge" fund hahaha... ull soon get there if u do well hehe ...

 

[usctrojancpa]

Good grief,

My present loan is with Provident but as you probably know, they're a really pain in the you know what to get to closing.  You must like
pain?    But $3800 is nice.

I'm not sure if it's the same with all the deals but I was told that once you lock, unless it goes down quite a bit, you're stuck.  Well, locking works both ways.  Maybe if it goes down to the high 2s we'll all be refi'ing again.

To be honest, my experience with Provident was pretty easy.  BHL was a bit more work to deal with since they pass your file along to multiple "processors" during the refi process.  Each have a specific job to do, but some will miss something and then it will get caught later when it is crunch time.  I hate being asked for information I already provided and it happened a few times with BHL.  With Provident, you deal with just 2 people and it was much more smooth. 

My financials are very clean so there wasn't anything out of the ordinary requested.  Maybe I got lucky....

No way could I ever go with Provident....I have way too many things going on with my finances.  Hell, my tax return is over 60 pages.

haha i am curious to how much u write off... lol...

I have several rental properties, various streams of income, short/long term gains on options trading, a 2nd home (where my dad lives), my primary residence, and all my business related expenses.  I think the trading activity takes up 10-15 pages.  The underwriters that had my loan files were probably not happy campers, I was the complete opposite of a vanilla borrower.  There was a lot of email explanations, additional documents that I needed to provide, and several letters of explanation detailing various things.  I write off whatever I'm legally entitled to write off per IRs regulations. 

Anything that you DON'T do USC?

i tend to prefer the the holdings company path style... for ur rental properties, do u hold it under a REIT? if u dont feel comfy talking about taxes u dont have to respond... i ask cause im not a CPA so everything i do ive learned from rich ppl guiding me, so im always interested in learning new tactics/strategies... i actually learned a few tricks cause of romney (since theres all these pundits out there that wrote articles on how they would have done it via trust funds etc if they were romney)... haha perfectly legal of course... to me, only idiots dont take advantage of it... lol hey no argument there, no one says the tax rate is the maximum u can pay uncle sam, since everybody is always free to willingly pay more on their tax returns if they feel benevolent , right? hahahaha

I've considered using LLCs and/or S-corps but at the end of the day the cost didn't justify the benefits for me so I just report them on my Schedule E.  Because I'm considered a full-time real estate professional I'm not bound by the IRS active real estate tax losses income limitations.  I have general umbrella liability insurance that I got to cover me for the rentals.  I read a lot on the IRS website and if there are ways for me to reduce my tax liability then I do those things. 

 

[Crispy3]

Good grief,

My present loan is with Provident but as you probably know, they're a really pain in the you know what to get to closing.  You must like
pain?    But $3800 is nice.

I'm not sure if it's the same with all the deals but I was told that once you lock, unless it goes down quite a bit, you're stuck.  Well, locking works both ways.  Maybe if it goes down to the high 2s we'll all be refi'ing again.

To be honest, my experience with Provident was pretty easy.  BHL was a bit more work to deal with since they pass your file along to multiple "processors" during the refi process.  Each have a specific job to do, but some will miss something and then it will get caught later when it is crunch time.  I hate being asked for information I already provided and it happened a few times with BHL.  With Provident, you deal with just 2 people and it was much more smooth. 

My financials are very clean so there wasn't anything out of the ordinary requested.  Maybe I got lucky....

No way could I ever go with Provident....I have way too many things going on with my finances.  Hell, my tax return is over 60 pages.

haha i am curious to how much u write off... lol...

I have several rental properties, various streams of income, short/long term gains on options trading, a 2nd home (where my dad lives), my primary residence, and all my business related expenses.  I think the trading activity takes up 10-15 pages.  The underwriters that had my loan files were probably not happy campers, I was the complete opposite of a vanilla borrower.  There was a lot of email explanations, additional documents that I needed to provide, and several letters of explanation detailing various things.  I write off whatever I'm legally entitled to write off per IRs regulations. 

I just submitted my 12th Letter of Explanation to Amerisave this morn..

 

[Crispy3]

Good grief,

My present loan is with Provident but as you probably know, they're a really pain in the you know what to get to closing.  You must like
pain?    But $3800 is nice.

I'm not sure if it's the same with all the deals but I was told that once you lock, unless it goes down quite a bit, you're stuck.  Well, locking works both ways.  Maybe if it goes down to the high 2s we'll all be refi'ing again.

To be honest, my experience with Provident was pretty easy.  BHL was a bit more work to deal with since they pass your file along to multiple "processors" during the refi process.  Each have a specific job to do, but some will miss something and then it will get caught later when it is crunch time.  I hate being asked for information I already provided and it happened a few times with BHL.  With Provident, you deal with just 2 people and it was much more smooth. 

My financials are very clean so there wasn't anything out of the ordinary requested.  Maybe I got lucky....

No way could I ever go with Provident....I have way too many things going on with my finances.  Hell, my tax return is over 60 pages.

haha i am curious to how much u write off... lol...

I have several rental properties, various streams of income, short/long term gains on options trading, a 2nd home (where my dad lives), my primary residence, and all my business related expenses.  I think the trading activity takes up 10-15 pages.  The underwriters that had my loan files were probably not happy campers, I was the complete opposite of a vanilla borrower.  There was a lot of email explanations, additional documents that I needed to provide, and several letters of explanation detailing various things.  I write off whatever I'm legally entitled to write off per IRs regulations. 

Anything that you DON'T do USC?

i tend to prefer the the holdings company path style... for ur rental properties, do u hold it under a REIT? if u dont feel comfy talking about taxes u dont have to respond... i ask cause im not a CPA so everything i do ive learned from rich ppl guiding me, so im always interested in learning new tactics/strategies... i actually learned a few tricks cause of romney (since theres all these pundits out there that wrote articles on how they would have done it via trust funds etc if they were romney)... haha perfectly legal of course... to me, only idiots dont take advantage of it... lol hey no argument there, no one says the tax rate is the maximum u can pay uncle sam, since everybody is always free to willingly pay more on their tax returns if they feel benevolent , right? hahahaha

I've considered using LLCs and/or S-corps but at the end of the day the cost didn't justify the benefits for me so I just report them on my Schedule E.  Because I'm considered a full-time real estate professional I'm not bound by the IRS active real estate tax losses income limitations.  I have general umbrella liability insurance that I got to cover me for the rentals.  I read a lot on the IRS website and if there are ways for me to reduce my tax liability then I do those things.

single member llc in CA gets passed to individual anyway??? I have a llc for just a couple of rentals... are you telling me that I'm not gaining anything by forming an llc for it?

 

[usctrojancpa]

Good grief,

My present loan is with Provident but as you probably know, they're a really pain in the you know what to get to closing.  You must like
pain?    But $3800 is nice.

I'm not sure if it's the same with all the deals but I was told that once you lock, unless it goes down quite a bit, you're stuck.  Well, locking works both ways.  Maybe if it goes down to the high 2s we'll all be refi'ing again.

To be honest, my experience with Provident was pretty easy.  BHL was a bit more work to deal with since they pass your file along to multiple "processors" during the refi process.  Each have a specific job to do, but some will miss something and then it will get caught later when it is crunch time.  I hate being asked for information I already provided and it happened a few times with BHL.  With Provident, you deal with just 2 people and it was much more smooth. 

My financials are very clean so there wasn't anything out of the ordinary requested.  Maybe I got lucky....

No way could I ever go with Provident....I have way too many things going on with my finances.  Hell, my tax return is over 60 pages.

haha i am curious to how much u write off... lol...

I have several rental properties, various streams of income, short/long term gains on options trading, a 2nd home (where my dad lives), my primary residence, and all my business related expenses.  I think the trading activity takes up 10-15 pages.  The underwriters that had my loan files were probably not happy campers, I was the complete opposite of a vanilla borrower.  There was a lot of email explanations, additional documents that I needed to provide, and several letters of explanation detailing various things.  I write off whatever I'm legally entitled to write off per IRs regulations. 

I just submitted my 12th Letter of Explanation to Amerisave this morn..

Wow, you beat me....I had 8 letters of explanations to close on my loan to purchase my house.

 

[usctrojancpa]

Good grief,

My present loan is with Provident but as you probably know, they're a really pain in the you know what to get to closing.  You must like
pain?    But $3800 is nice.

I'm not sure if it's the same with all the deals but I was told that once you lock, unless it goes down quite a bit, you're stuck.  Well, locking works both ways.  Maybe if it goes down to the high 2s we'll all be refi'ing again.

To be honest, my experience with Provident was pretty easy.  BHL was a bit more work to deal with since they pass your file along to multiple "processors" during the refi process.  Each have a specific job to do, but some will miss something and then it will get caught later when it is crunch time.  I hate being asked for information I already provided and it happened a few times with BHL.  With Provident, you deal with just 2 people and it was much more smooth. 

My financials are very clean so there wasn't anything out of the ordinary requested.  Maybe I got lucky....

No way could I ever go with Provident....I have way too many things going on with my finances.  Hell, my tax return is over 60 pages.

haha i am curious to how much u write off... lol...

I have several rental properties, various streams of income, short/long term gains on options trading, a 2nd home (where my dad lives), my primary residence, and all my business related expenses.  I think the trading activity takes up 10-15 pages.  The underwriters that had my loan files were probably not happy campers, I was the complete opposite of a vanilla borrower.  There was a lot of email explanations, additional documents that I needed to provide, and several letters of explanation detailing various things.  I write off whatever I'm legally entitled to write off per IRs regulations. 

Anything that you DON'T do USC?

i tend to prefer the the holdings company path style... for ur rental properties, do u hold it under a REIT? if u dont feel comfy talking about taxes u dont have to respond... i ask cause im not a CPA so everything i do ive learned from rich ppl guiding me, so im always interested in learning new tactics/strategies... i actually learned a few tricks cause of romney (since theres all these pundits out there that wrote articles on how they would have done it via trust funds etc if they were romney)... haha perfectly legal of course... to me, only idiots dont take advantage of it... lol hey no argument there, no one says the tax rate is the maximum u can pay uncle sam, since everybody is always free to willingly pay more on their tax returns if they feel benevolent , right? hahahaha

I've considered using LLCs and/or S-corps but at the end of the day the cost didn't justify the benefits for me so I just report them on my Schedule E.  Because I'm considered a full-time real estate professional I'm not bound by the IRS active real estate tax losses income limitations.  I have general umbrella liability insurance that I got to cover me for the rentals.  I read a lot on the IRS website and if there are ways for me to reduce my tax liability then I do those things.

single member llc in CA gets passed to individual anyway??? I have a llc for just a couple of rentals... are you telling me that I'm not gaining anything by forming an llc for it?

The only thing that you gain is liability protection.  Single member LLCs do not file 1065s, they are flow through entities that get reported on either Schedule C (if you have a non real estate rental generating business) or Schedule E (for real estate generating businesses).  Your CPA didn't tell you that???

 

[changm55]

yeah my understanding is the same too, only partnership llcs can elect the scorp route... sole member is pass through...

not necessarily completely useless... depends on which state u file ur taxes in and where ur llc is incorporated (ur cpa may have incorporated u in delaware/nevada so ur saving via that route instead by side stepping california state n california llc tax/fee) lol...

i think irvine pacific is incorporated in delaware too... tham basterds~ lol

 

[qwerty]

not necessarily completely useless... depends on which state u file ur taxes in and where ur llc is incorporated (ur cpa may have incorporated u in delaware/nevada so ur saving via that route instead by side stepping california state n california llc tax/fee) lol...

i think irvine pacific is incorporated in delaware too... tham basterds~ lol

Chaos - FYI, where a company is incorporated has little to do about where it pays taxes. The incorporation in Delaware is due to favorable laws (takeovers, etc) and ease of setup, but just because a company is incorporated in Delaware or Nevada it doesnt mean it pays taxes in that state at some lower rate or none at all.  You do have to pay your state of incorporation fees every year and that is calculated based on net assets or stock calculation.

Regarding the taxes though, a company pays taxes on earnings depending on the state in which those earnings are generated. A company apportions its income to various states - typically most companies do an apportionment analysis every year to determine where they have a tax liability and need to file a tax return. I can guarantee you that The Irvine Company pays California a hefty amount of taxes each year on the profits from the new home building in irvine as well as all of its rental income located in California.  Same thing with an LLC, it may be incorporated in Nevada where there is no corporate income tax, but if all of the LLC's work is being performed in CA because the owner is here and is a resident of CA, then the LLC will pay taxes on all of its earning based on CA tax rates even though the LLC is based in Nevada.  Essentially in any state where a company operates is has established nexxus (a presence that requires you to pay taxes in that state).  Similar rules apply to regular employees, if you are a CA resident and you are say a consultant who works half the year in NYC, you will bay income taxes both in CA an NY.

 

[changm55]

im a bit confused... how come these lower tax states like nevada always advertise like no corporate tax, no personal tax?...