If your activities give you "nexus" in New York, you will need to file a New York income tax return in addition to your Pennsylvania income tax return. While you most likely do have New York nexus, I recommend you look at the Nexus section of the NYS Corporate Income FAQs. The Nexus rules apply to all businesses that sell products or provide services in the state (not just Corporations). The Nexus section reads, in part:
Businesses that exercise a corporate franchise, do business, employ capital, own or lease property, maintain an office, or derive receipts (of $1 million or more in a tax year) from activity conducted in New York will be subject to tax for that tax year. Franchisors that sell goods and services, or licenses, to franchisees located in New York State are not specifically exempt from tax. Therefore, they are subject to the same tax provisions as any other corporation that conducts activities in New York State.
In addition, businesses that exercise a corporate franchise, do business, employ capital, own or lease property, or maintain an office in the Metropolitan Commuter Transportation District (MCTD), or derive receipts (of $1 million or more in a tax year from activity in the MCTD) are subject to the metropolitan transportation business tax (MTA surcharge).
The "do business" part of this excerpt will most likely apply to you which would require you to file a New York State (and possibly city, like New York City) income tax returns.
A business that has any income derived from New York sources, regardless of the amount, is required to file a return for the taxable year setting forth all items of income, gain, loss and deduction, etc. (Tax Law section 658(c), 20 NYCRR section 158.9(a)).
Income from New York sources includes, among other items, income attributable to a business, trade, profession, or occupation carried on in New York State. (Tax Law section 631, Instructions to 2016 Form IT-204.) You are considered to carry on a business, trade, profession, or occupation within New York State if (1) you maintain or operate an office, shop, store, warehouse, factory, agency, or other place in New York State where its affairs are systematically and regularly carried on, or (2) you perform a series of acts or transactions in New York State with regularity and continuity for livelihood or profit, as distinguished from isolated or incidental transactions (emphasis added) ((Tax Law section 631, Instructions to 2016 Form IT-204).
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