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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29535
Experience:  Taxes, Immigration, Labor Relations
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I have an LLC which I moved form NY to DE. Domiciled?? It's

Customer Question

I have an LLC which I moved form NY to DE. Domiciled??
It's now registered in DE and dissolved in NY.
I am wanting to move the LLC totally out of NY to avoid tax this year.
I presently do not live in NY or DE. I have no fixed address as I am travelling around for work living in hotels (crazy I know).
I used a registered agent to register the LLC in DE.
I still have a PO Box in NYC for the business. Is this a problem which may make me need to pay tax in NYC for 2016?
Any tips for totally avoiding NY tax in 2016?
Thank you.
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

The simple solution would be to establish a residency in tax free state - for instance in Texas or Florida and have DE LLC which do not do any business activities neither in DE nor in your residency state.

Customer: replied 1 year ago.

Thanks but I am traveling.

I don't really want to pay rent somewhere if I don't live there.

It's on online website and there are clients in every single state.

Expert:  Lev replied 1 year ago.

That is not an issue HOW your business is organized...
It may be online or any other way.

It doesn't matter where your clients are - but the matter is where (physical place) you perform services.
That is a matter of your residency. If you do not want to change your residency - you will be considered NY resident - that is an issue.
You might try to proof that you do not live in NY - but if they really come after you - you woudl not able to proof that - and your position will be vulnerable.
So you woudl be in gray area - and might be lucky and NY taxing authorities will never know - but there is no guarantee.

So - that is a matter of your residency and a matter of your choice to establish it.

Customer: replied 1 year ago.

Thanks

So I'm asking how I can 100% remove all my residence from NY.

I don't have a home. I am living in hotels.

The business is being done on a website, we have no physical address. Only a registered agent in DE

Thanks

Customer: replied 1 year ago.

Will having the PO box in NY be an issue.

What about drivers licence.. I can't get one in another state because I don't have an address to change it to.

For example in California I would need to show address where i live and provide bills in my name etc. I don't have any of these.

Expert:  Lev replied 1 year ago.

If you do not want to change your residency - you will be considered NY resident.

In order to change your residency - you will need to establish a residency in any other state.

Otherwise - NY authorities will treat you as a resident and there is nothing you may do.

I think we discussed that issue here

http://professional.justanswer.com/chat/index/3fa63562bd1b449cb0b5ea9061093b94

that was a couple of weeks ago...

I would appreciate if you review and rate my work - so I would be properly credited.

Expert:  Lev replied 1 year ago.

I just run into following article that might be very helpful for you to learn about possible consequences if you face so called - New York State residency audit

http://www.rothcocpa.com/news/new-york-state-residency/

A New York State residency audit is used to determine whether a taxpayer who filed as a nonresident/part year resident, should have filed as a resident and paid income tax to New York on their worldwide income.

As mentioned in the article - a New York State residency audit is a document intensive process and the one of the most difficult audits.

.
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