Nys State income tax for out of state resident?

[sbresler1111]

I own a single member llc that is registered in NY. I am a therapist and see all clients via telegraph remotely (this is my income source). Patients are mostly located in NY. In August, I moved to Washington State and no longer come to NY for any physical business purposes. My questions are: 1. Am I still obligated to pay nys income tax on clients that still reside in NY? (My previous clients still live in NY) 2. Because my llc is registered in NY, does this obligate me to pay any specific NY taxes even after I have moved? 3. Should I register a new llc in the state of Washington?

[tagteam]

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@sbresler1111 wrote:
Should I register a new llc in the state of Washington?

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I'm going to page Champ @Mike9241 for your question but it probably would not be a bad idea to register a new LLC in your current state since you have to register your NY LLC there anyway.

[Opus 17 · Accepted solution]

1. If you are self-employed, you pay state income taxes based on where your permanent residence (domicile) is located, or where you physically perform the work, if that is in a different state.  While New York can sometimes tax non-residents who work for NY-based employers, that does not apply for self-employment.

2. If you are a single-member LLC not treated as a corporation, then you are taxed as a sol proprietor (disregarded entity). As such, #1 applies and your income is not NY sourced unless you live or perform the work in NY.  However, there may be annual legal fees that I can't speak to.  You may want to talk to a NY-based accountant.

3. You should talk to an attorney about that.  LLCs are creations of state law, and each individual state may have different laws, rules, benefits, and costs of being an LLC.  

[tagteam]

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@Opus 17 wrote:

3. You should talk to an attorney about that.  LLCs are creations of state law, and each individual state may have different laws, rules, benefits, and costs of being an LLC.  

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There is usually no valid reason for a provider of a service to have a single-member LLC organized in a state in which that provider is not a resident. 

However, there may be better structures for liability purposes that @sbresler1111 should explore with legal counsel in the area.