S Corp in Florida - Live and work in NJ

[CPA21]

Hey guys,

I incorporated my consulting business as an S-Corp last year in Florida (originally from) in 2019.  Turns out, all of my clients are in NYC so I've rented an apartment in NJ and most likely will spend more than 6 months up there rather than in Florida.  Questions are:

a. Do I need to convert change my registration from Florida to NJ

b. As an S-corp, am I an employee of the state of NJ?  

c. Do I pay employer taxes from Florida or NJ?

Thanks in advance for the help.

Raul

[KarenM90]

It depends.

a.  If you incorporated in Florida, there is no need to change that (other than contact addresses, so the various states can contact you regarding filing requirements, etc.)

However, you will need to register your business in New York, if you are conducting business in New York.  Here is a link to the NYS Information on Conducting Business in NY:  Conducting Business in New York.  

b.  If you are taking a salary out of your S-Corp (that is the correct way to do it!) then yes, you will be considered an employee of NJ and should withhold State NJ state taxes while you are living in NJ.

c.  If you are asking how to pay your payroll taxes (to which state) anything withheld or paid by the S Corp for/ from your pay for NJ taxes while you are living in NJ will be paid to New Jersey.  Since Florida does not have a personal income tax, no state taxes are withheld on the portion of your wages paid while you were in Florida.  Amounts withheld for Federal taxes, social security and Medicare will be submitted to IRS, as required for Florida Corporations.

[CPA21]

Thank you very much that is really helpful.  To confirm, I basically have to register for payroll tax in NJ?

Thanks again,

Raul

[KarenM90]

Yes!  Here is a link to the New Jersey website to register.  New Jersey Employment Registration

When you select the GET STARTED button, it will walk you through registering for your business. 

On the next screen it will let you choose to Register a non-New Jersey Business Entity with employees residing in New Jersey.

Follow the prompts from there.