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TexLaw
TexLaw, Attorney
Category: Legal
Satisfied Customers: 4430
Experience:  Lead trial/International commercial attorney licensed 11 yrs
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In August of 2012, I filed an online based retail LLC in the

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In August of 2012, I filed an online based retail LLC in the state of Michigan of which I lived in for 29 years. Within a few months, my husband received a job and moved to central New York. I followed him there, but still have my license, car insurance and plates registered to Michigan. I have also been back to MI for a month, but then came back to New York. A month ago, I started working a part time job in New York. My question is whether or not I am still considered a Michigan resident or if I'm legally a New York resident? Also, I've read online that as long as I don't stock merchandise and I operate online, and have no employees, that I do not have to dissolve my LLC in Michigan and re-file in New York. Is that true? Is it legal to be a resident of New York, but have my business registered in Michigan at a family members house in my name? I've had two sales sold online to a Michigan resident and i've had 5 sales sold online to New York residents. I'm about to file my taxes and I want to make sure that everything I'm doing is legal.
Hi,

Thank you for your question. Before I can answer, I need to know more about your business.

What kind of business is it? What are you selling? Where does the product (if any) shipped from?

I look forward to hearing back from you.

-ZDN
Customer: replied 4 years ago.

I sell bridal accessories on an online marketplace similar to ebay. I'm about to launch my own company website in a month. The products are drop shipped from companies in MA, NJ and overseas.

Thank you for your response.

I will address your questions one at a time:

1. My question is whether or not I am still considered a Michigan resident or if I'm legally a New York resident?

A: The law defines a resident as a person who lives in NYS with the intent to make NYS a "fixed and permanent" place to live. To live in a house, a home, an apartment, a room or other similar place in NYS for 90 days is considered "presumptive evidence" that you are a resident of NYS. However, if you travel back and forth between NY and MI, you may not have the requesite intent. Because you are now living and working a job in New York, you are likely considered a New York resident, unless you could show that you do not intent to permanently reside there and are living in MI as well.

2. I've read online that as long as I don't stock merchandise and I operate online, and have no employees, that I do not have to dissolve my LLC in Michigan and re-file in New York. Is that true?

A: You would never have to dissolve the corporation simply because you personally don't live in MI. A corporation is a separate entity with its own individual identity and exists apart from you. You are operating it and thus the only question would be whether you need to register it as a foreign corporation in New York. Because you are an online entity, and you do not actually merchandise out of NY and do not use a hard address in NY associated with your LLC, you do not need to register it in NY, nor do you have to pay NY sales tax on the sales to individuals in NY. You may continue operating as an MI LLC as long as you have a hard address in MI and have someone in MI who can receive service of process.

Please let me know if you have further questions on this matter. Please also consider rating my answer positively so that I am compensated by the website for my work on your question.

Thanks,
ZDN
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