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NY Corp with all out of state employees

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blueman

Junior Member
What is the name of your state? NY

Hi There,

Our S-Corp was registered in NY this year and has a physical office base there. However all of the employees (company officers only) are MN residents and did not actually perform any work in NY state in 2007 - everything was done remotely by phone and computer and none of our customers were in NY either.

Do we need to register for NY state withholding tax (NYS-100) or withhold any NY state taxes for our employees in this situation? (Obviously we have registered for and will be withholding MN state taxes)

I called NY State Tax Dept and asked them the same question. The person I spoke with told me that the answer was "no" to both questions. But I wanted a second opinion :)

Thanks .... Daniel.
 


abezon

Senior Member
How do you have an office in NY & no employees staffing it? Someone has to be answering the phone & that person should be getting paid a reasonable wage & having NY taxes deducted. The MN employees are fine.
 

blueman

Junior Member
We have a Vonage phone (with NY number) which we can use anywhere in North America. So - no need to have anyone in the office.
 

LdiJ

Senior Member
We have a Vonage phone (with NY number) which we can use anywhere in North America. So - no need to have anyone in the office.
Well, then you are fine. However it is a bit unusual that you have an NY home base and office, but no one is there. It sounds rather inconvenient. You are going to eventually need a "registered agent" in NY, and that can be an attorney.
 

blueman

Junior Member
Thanks for the help. I admit - it is an unusual situation. One point though - I checked with the NY Dept of State and they do not require a registered agent in NY State. They need an address for service of process but that can be anywhere in the United States.

Another thing which (I think) is unusual is that NY does not require a corporation to have a corporate seal.

Thanks again.
 

LdiJ

Senior Member
Thanks for the help. I admit - it is an unusual situation. One point though - I checked with the NY Dept of State and they do not require a registered agent in NY State. They need an address for service of process but that can be anywhere in the United States.

Another thing which (I think) is unusual is that NY does not require a corporation to have a corporate seal.

Thanks again.
The corporate seal bit is not unusual at all.
 

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