Hiring employees (including remote employees) who live & work in state other than the state your business is registered in, typically triggers a "physical presence" for your business in this new state. There are several steps that must be taken in order to "operate" in the other state.
Setting up a new state takes time...do not expect this process to be fast, it will take several weeks for government agencies to process applications.
Pro Tip - hire someone to help navigate this complex process, we recommend (and also use) CorpNet. Contact us for more information.
Typically the first step is to register your existing Business entity to do business in the new state
A Physical Presence means that the new State will most likely require you to register your existing business from your home state, in the new state. (CorpNet can help confirm state requirements)
(NOTE - DO NOT REGISTER A NEW LLC/S-Corp in the new state. If you register a new LLC/S-Corp in your new state, it will have no attachment whatsoever to your active LLC/S-Corp & existing business)
Next, your Business entity must open all required State & Local payroll tax agencies i.e. wage withholding, unemployment tax, etc and collect/pay all required employee & employer taxes
- Once your business "Foreign Entity" registration is complete, the next step is to open all State/Local required payroll tax agencies.
- Once all State/Local required payroll tax agency accounts have been opened, you must enter this information into your payroll software/app
Only after all these steps are complete, will you be ready to run payroll for out of state employees!
See also How do I file my annual State Business registration renewal?
See also What do I need to do with my business if I move to or operate in another state?
See also What do I need to do with my business if I move to or operate in another state?
Comments
0 comments
Article is closed for comments.