How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask socrateaser Your Own Question

socrateaser
socrateaser, Lawyer
Category: Tax
Satisfied Customers: 34067
Experience:  Retired (mostly)
10097515
Type Your Tax Question Here...
socrateaser is online now
A new question is answered every 9 seconds

We are a Virginia based LLC that provides website development

Resolved Question:

We are a Virginia based LLC that provides website development and online marketing services to clients across the USA and we have a few clients in other countries.

We are an LLC partnership registered in Virginia, owned by myself and my brother. Most of our workers are 1099-contractors and everyone works from their own home. My brother is in Virginia and I am in Florida.

We are planning to hire an employee (W-4) and have Nexus questions related to them and myself.

Keep in mind that the services we provide are digital and work is done from the worker's home, not on-site at the client's location or at a company location. Our company has no actual physical office location.

1) Where should my income tax liability be? Virginia or Florida? We are a Virginia company, but I live and work from my home office in Florida.

2) If we were to hire an employee in Florida, where would their tax liability be, and which state's employment laws and taxes would we follow? Virginia or Florida? We are a Virginia company, but the employee would live and work from their home in Florida.

Thanks,
Adam
Submitted: 3 years ago.
Category: Tax
Expert:  socrateaser replied 3 years ago.
1) Where should my income tax liability be? Virginia or Florida? We are a Virginia company, but I live and work from my home office in Florida.

A: An LLC does not pay taxes. The owners pay taxes on the distributions of profits received and reported through their K-1 Information Return, and they are liable where they perform their services for the LLC. If you are in Florida, then your liability is in Florida.

If you are receiving a 1099, while simultaneously being an owner of the LLC, then that 1099 is incorrect, because you cannot legally be an independent contractor to an LLC in which you are an owner -- i.e., a partner cannot be independent while working for the partnership.

2) If we were to hire an employee in Florida, where would their tax liability be, and which state's employment laws and taxes would we follow?

A: An employee is subject to the employment laws where the personal services are performed -- as is the employer, because by employing the person in a different jurisdiction, the employer submits to that jurisdiction for the purposes of doing business. Here again, the answer is Florida.

Hope this helps and happy new year.

NOTICE: My goal is to assist people who cannot afford traditional legal services. Without your contribution, I will be unable to continue to help others in this forum. I am always available to answering your follow-up questions after you click Accept – however, if you do not click Accept, the website gets paid, and I receive nothing. This is true, even if you are on a subscription plan. So please click Accept, so that I will be able to continue to provide this service for others in the future.

socrateaser, Lawyer
Category: Tax
Satisfied Customers: 34067
Experience: Retired (mostly)
socrateaser and 6 other Tax Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.