• February 2020
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I want to consult independently for a NYC-based business. Should I form an LLC in NJ where I reside, or NY where I will perform most of the work?

Typically, it’s wise to form a limited liability company (LLC) in the state you live in because that’ll enable you to file taxes just one time – your annual income tax. When you file you’ll need to report all income from all state sources. That means, if you’re a resident of New Jersey and working in New York, you’ll need to report any income received during the tax year on your New Jersey tax return, regardless of what state it came from. However, by also doing business in New York, you’ll have to apply for foreign qualification and then be taxed for the earnings you made in New York.

You shouldn’t figure this stuff out on your own – that’s what an attorney is for. At LawTrades, we hook entrepreneurs up with top startup attorneys to ensure each step they’re taking is lawful and in their best interest.