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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28082
Experience:  Taxes, Immigration, Labor Relations
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I am considering a "vanity address" so that my

Customer Question

I am considering a "vanity address" so that my business has a couple of prestigious addresses in NYC (Madison Ave) and Chicago (Michigan Ave). I would not have an office in either state and just have the mail forwarded. Are there any tax consequences? I don't want to have to pay income taxes in these in NY State or Illinois. I will be paying income taxes in Arizona.
Submitted: 9 months ago.
Category: Tax
Expert:  Lev replied 9 months ago.

In general - having a mailing address by itself would NOT create nexus and would not trigger any tax liability.

However - that fact along might made taxing authorities to "think" that the business actually performs business activities within the jurisdiction...

So - you may receive letters from both localities - and you would need to be prepared to reply and provide reasoning and explanation of facts.

Customer: replied 9 months ago.
Thanks for your help Lev... much appreicated!
Expert:  Lev replied 9 months ago.

That actually two sides of the same coin - you want your potential customers to "think" that you have expensive location - and because of that your business is well established - but same "thoughts" will come to taxing authorities under whose jurisdiction these locations are...

So - there might be additional overhead.

.

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