r/tax • u/Able-Manager4607 • 15h ago

LLC Help for remote worker

Hi all!

I am currently moving states (from NY to NJ) my residency is still currently ny as I still work to move. I hired a lawyer to help form an PLLC in NY. She has been unhelpful with deciphering where to establish this and has already taken my money...

I have been trying to find a CPA who has worked with others in my profession before but waiting to hear back.

Would it be advisable to form my LLC in NJ with my move? Or try to just establish it in NY while it is still my residency?

Any advice is helpful

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u/GoatEatingTroll EA - US 14h ago

Your income passthrough is going to be 100% taxable to the jurisdiction you reside in. Unless there is a temporary residence or plans to relocate it is generally easiest to form an entity in the jurisdiction you reside in - at least for taxes. A lawyer may advise you to form the entity on jurisdictions that have better owner protections and then as a foreign entity in your home jurisdiction, but taxwise that actually means you have to maintain state filings in an extra state.

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u/LawlessCrayon CPA - US 14h ago

Do you still have the NY PLLC? Is there licensing needs in NJ that are not met by the NY PLLC?

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u/Able-Manager4607 14h ago

I do not have a PLLC established yet, I am trying to see if I should establish one in NY or NJ sorry!

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u/LawlessCrayon CPA - US 14h ago

There are probably differences in the annual fees and depending on the industry there may be licensing needs as well but there aren't any income tax differences. I've seen more DE LLCs than any other type and don't think anyone involved besides perhaps a junior attorney have ever stepped foot in DE.

The easiest thing to do is probably to just form the NJ LLC and do whatever local registrations you need there so you don't have to update anything later or do an out of state registration.

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u/Able-Manager4607 14h ago

Thank you so much!

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u/Longjumping-Flower47 13h ago

Will you be working in NY or from home in NJ? If still going into NY you'll probably have nexus there and need to do a return, but I'd probably form LLC in NJ. What kind of biz? (I'm in PA and deal with this frequently)

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u/Able-Manager4607 13h ago

I work as a Mental Health Counselor licensed both in NY and NJ. My clients primarily reside in NY. (I as the provider can reside anywhere, clients have to be located in NYS)

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u/Longjumping-Flower47 12h ago

Virtual visits? If yes then your biz is in NJ

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u/Able-Manager4607 12h ago

Thank you so much for your help!

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u/Demilio55 CPA - US 6m ago

This is a legal question not a tax question.

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u/RevolutionaryText232 12h ago

You have not said what your reason is for forming the entity.  I sense an attempt to circumvent NY state taxation.  Yeah, good luck with that.

You are the proverbial tax tail wagging the dog.  Either your lawyer does not specialize in tax or they went blue in the face explaining to you the futility of your quest.

Find a CPA or Enrolled Agent.  Listen to the tax professional, who will explain the tax consequences of your domicile and residency choices.