Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.
How are you today?
Is the virtual address in Louisiana or Los Angeles? Some people say "LA" when they mean Louisiana and others say "LA" when they are referring to Los Angeles, California
Virtual address is in Walnut, CA (close to Los Angeles)
You will definitely owe tax to NY/NJ
You do not owe tax to Nevada and I'm double checking about California
The virtual office may create tax liability in California but I want to double check
Will that tax to NY/NJ be on ALL transactions - or only for the ones where we sell to NY/NJ resident?
Are you speaking about sales tax or income tax?
For income tax you will pay income tax on all transactions. For sales tax, it would only be those sales within the state
Yes, the virtual address in California would create California tax liability as it is like you are doing business in that state
I would consider getting a virtual office in Nevada or New York
So if we get a virtual office in NY, and an llc in Nevada, we will pay income tax only in NY, and an annual tax (fixed) in Nevada. Right?
If you live in New Jersey you would owe tax there too
You would owe income tax to New York, and New Jersey if you live there - and Nevada doesn't collect income tax.
But that is like dual taxation - is the NY and NJ going to tax us on the same income base?
Do you live there?
In both states?
nope - live in NJ. But thought NY virtual address will sound better.
So you would have no office in New York, except a virtual office? I thought you lived in New York
just a virtual office (not yet - going to move our virtual office from CA to NY - per your advice).
Then you open yourself up to state tax in New York, too - why not just use a Jersey address
Then you only have to worry about New Jersey
Makes sense. I just thought (in my naivete) that even if I have NY address (virtual) and NJ (living add), I would still pay the same tax (just will get somehow divided between NY and NJ) :-).
No, you would have to pay tax in both states since you are doing business and live there
So, I would do the NJ virtual office, with the NV corporation
No income tax is due to Nevada as they do not collect business income tax
Awesome! Thanks a bunch for your help.
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