Moving business to a different state and back

[kingmo]

What is the name of your state? New York and Texas

Long story short i'm moving from NYC to Texas for 1-2 years only. Texas has no state taxes, so naturally i'd like to operate my business from there. I have an LLC. How would that work with state registration. Do I need to close my business in New York before moving and then open it in Texas when I arrive there, and redo the process when I return? Since i'm moving in March will I have to pay partial state taxes to both states next year?

 

[PayrollHRGuy]

What is the name of your state? New York and Texas

Long story short i'm moving from NYC to Texas for 1-2 years only. Texas has no state taxes, so naturally i'd like to operate my business from there. I have an LLC. How would that work with state registration. Do I need to close my business in New York before moving and then open it in Texas when I arrive there, and redo the process when I return? Since i'm moving in March will I have to pay partial state taxes to both states next year?

You simply register your foreign entity with the state of Texas.

https://www.sos.state.tx.us/corp/foreign_outofstate.shtml

You will need to continue paying franchise tax in NY if you want to keep the entity in good standing there. And yes taxes will need to be paid where the business is done.

Also, if you still make sales in NY while you are in TX you do have to make sales tax payments there.

 

[LdiJ]

What is the name of your state? New York and Texas

Long story short i'm moving from NYC to Texas for 1-2 years only. Texas has no state taxes, so naturally i'd like to operate my business from there. I have an LLC. How would that work with state registration. Do I need to close my business in New York before moving and then open it in Texas when I arrive there, and redo the process when I return? Since i'm moving in March will I have to pay partial state taxes to both states next year?

What does your business do? Would your business be operating in NY while you are living in TX?

 

[adjusterjack]

You'll likely have to register your LLC in Texas as a foreign LLC. Google that to find out how.

Texas doesn't have an income tax but it does have a sales tax so you'll want to check out the state sales tax agency, maybe even county and city levels. You can google that stuff, too.

I don't know what you mean by close and open.

You can check with the NY agency where you filed your LLC and see if any documents need to be filed when you move the business out of state.

You will almost certainly have to file a part year income tax return for NY through March. Your account should be able to advise you on that.

If you have any business insurance, make sure you advise your agent and make the appropriate changes on your policy.

 

[davew9128]

Texas doesn't have an income tax

An LLC will still have to file and/or pay Texas Margin tax. The whole "no Texas income tax" thing is a myth.

You will almost certainly have to file a part year income tax return for NY through March

Businesses don't file part year tax returns.

 

[adjusterjack]

He'll file a 2022 tax return for NY and pay tax for 2022 for income earned in NY.

Filing Information for New York State part-year residents (ny.gov)

 

[davew9128]

He'll file a 2022 tax return for NY and pay tax for 2022 for income earned in NY.

Filing Information for New York State part-year residents (ny.gov)

I'll say it again, BUSINESSES don't file part year returns. In any state. Thats not how businesses are taxed.

 

[kingmo]

You simply register your foreign entity with the state of Texas.

https://www.sos.state.tx.us/corp/foreign_outofstate.shtml

You will need to continue paying franchise tax in NY if you want to keep the entity in good standing there. And yes taxes will need to be paid where the business is done.

Also, if you still make sales in NY while you are in TX you do have to make sales tax payments there.

My business is 100% digital, so NY sales tax wouldn't apply right? I don't own a franchise it's an LLC, so that's not applicable either?

 

[kingmo]

What does your business do? Would your business be operating in NY while you are living in TX?

It's an ad agency. I would simply move my offices to Texas but all my services are online.

 

[kingmo]

Businesses don't file part year tax returns.

What do you mean by that? My business will spend 2 months in NY and 10 months in Texas this year.

 

[davew9128]

What do you mean by that? My business will spend 2 months in NY and 10 months in Texas this year.

Perhaps I should use smaller syllable words? Businesses aren't taxed like that. Clearly you're in over your head and should be consulting a paid professional.

 

[Just Blue]

px hx

 

[adjusterjack]

I'll say it again, BUSINESSES don't file part year returns. In any state. Thats not how businesses are taxed.

Where did I say anything about BUSINESS?

Maybe you should be consulting an English teacher.

 

[LdiJ]

Where did I say anything about BUSINESS?

Maybe you should be consulting an English teacher.

The OP is talking about a business.

 

[davew9128]

Where did I say anything about BUSINESS?

Maybe you should be consulting an English teacher.

Maybe you should read the first post where the entire question is with regards to a LIMITED LIABILITY COMPANY.