Hi, my wife and I are considering to move to a different state. She currently has a NY-registered LLC which she uses to provide esthetician (/skin care) services. The LLC is a disregarded entity so its income and expenses pass through to our personal married filing jointly tax return. If we move to the other state, then would it be necessary or better to create a new LLC registered in that state? And would we need or is it advised to create a new bank account for the new LLC? Or can she continue using the same NY-based LLC? If the latter, then would we need to pay income taxes to New York? We obviously dont mind doing so, and I am just wondering about whether there would be double taxation between the 2 states and any partial offsets through foreign tax credits in the state we move to.
We are thinking of moving to Florida, which I believe has no state and city income taxes, so then I guess we'd need to make it clear she was working in Florida through a Florida-registered LLC? Alternatively, we considering moving to another State like California which has state and city income taxes, and so I wondered in this case whether it's advisable to start a CA-registered LLC, or whether the NY LLC and bank account can continue to be used for simplicity and whether the income and expenses would just flow onto our CA and federal MFJ tax returns, and not a NY return. Thank you
You'll need to sign in or create an account to connect with an expert.
In a lot of states an esthetician needs to be licensed so that might have to be factored in.
It's probably a good idea to stay as far away from NY and CA as possible because those two states have strangleholds on their residents when it comes to taxes. I mean you're better off with Florida no matter what but that LLC, all bank accounts......everything.....should be transferred OUT of NY. Otherwise, you should see a tax and legal pro.
This is just an opinion, and we all know what opinions are like. 🙂
Because NY and CA are tax hells, I would suggest you totally and completely close any and all businesses registered in those states, in their entirety. For NY this will involve filing a notice of dissolution of some type.
Then after you move to FL establish a completely new business registered as an LLC in the state of FL with a completely new EIN. Since it's absolutely free and only takes about 10 minutes to get an EIN at https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-n... this should not be that big of an issue.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
smncsilla
New Member
hurrington
New Member
brittany_dec1
New Member
allentravers
New Member
evan-scott1
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.