I need to form a company in Calif/USA. Min tax is $800/year. I won't make $ for first 2 yrs. What to do?

I'll be pursuing angel and/or VC funding (have lots of experience with this) -- but for now, do NOT want to pay $800 in taxes just because I have an LLC, when I'm SURE the company won't be making any income in that period.

Should I do a Nevada corp? Delaware? Something else? What about the California 1-year sort-of exemption from the $800 (which I can't quite figure out!)

Thanks!

You don't have to pay the $800 the first year. If your not going to make money in 2 years then you are probably just wasting your time forming the company and it will be a hassle to do filings and such which you will have to do regardless. Or you can do it in Delaware or another state instead.

Why not just put the cash in an interest bearing escrow account and be a sole proprietor for now and incorp after you get all the funding.

No one's gonna let you just pocket the cash for two years - they want to see a return.

VC firms like to see an idea with a registered corporation heading it up.They invest in the stock of the company on the premise that the investment will bring a huge return and that their shareholdings are worth something they can sell when they want to get out of the investment, if they do, best bet is go with a Nevada or DE corp or LLC.

Talk to the company corporation
www.thecompanycorporation.com or corporate.com they are the professionals in this type of formations business, or a good lawyer/accountant