"Alon S." <quickpick80[at]hotmail.com> wrote

- quote -

Then you'll owe New York income tax, as well as New York
CITY tax, as ~htat~ is where you conduct your business.

- quote -

It's not only your residence, but for the business itself,
where the work is actually performed. In your case, where
are you when you turn on the computer.

- quote -

There aren't any.

--
Paul A. Thomas, CPA
taxman at negia.net

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- quote -

First let me say something about S-Corporations. That is a
Federal election and has nothing to do with how you
incorporate your business. A corporation is a corporation.
The manner in which it is taxed is goverened by Federal laws
and the laws of the states that you do business in or are
headquartered.

Now, wherever your business is based will determine whether
you need to regester in that state regardless of where you
incorporate in. Your home office will determine your situs.
So, if you incorporate in DE, and have your offices in NYC,
or anywhere else, you will be taxed on your income at that
site, NOT DE. You will pay state franchise fees to DE. You
will need to regester to do business in NYC and pay income
taxes there.

Incorporating in one state and doing business in another can
be expensive and require additional tax filings. Usually,
companies incorporate in DE because of the protections that
the state offers in stockholder items. Talk to a Lawyer to
clarify all of these points.

Bruce Raskin, CPA
Small Business and Individual Tax and Accounting Services

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"Alon S." <quickpick80[at]hotmail.com> wrote

- quote -

Then you'll owe New York income tax, as well as New York
CITY tax, as ~htat~ is where you conduct your business.

- quote -

It's not only your residence, but for the business itself,
where the work is actually performed. In your case, where
are you when you turn on the computer.

- quote -

There aren't any.

--
Paul A. Thomas, CPA
taxman at negia.net

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

My business partner and I are researching where is the best
state for us to incorporate in. We're planning to launch a
website that we've been working on for few months. We both
reside in NYC. We originally wanted to go the traditional
way and register in DE as an S corp. But since we both
reside in NY we might need to qualify in NY and be liable
for taxes in NY state and city. From what I've read in the
past, NYC doesn't recognize S Corp, or what that changed
recently?

What constitutes doing business in NY for an internet site
that is global, is it our residence and where we file our
personal taxes? I guess I don't see what is the benefit of
incorporating in DE or NV as far as taxes go. It seems like
we're have to pay NY State and city taxes (and for NYC we'll
be treated as C corp.) Is having a registered agent alone
will help us legally avoid paying taxes in NY state and
city? I'm just trying to figure out the most tax beneficial
way to incorporate. Thanks.

Alon.
quickpick80[at]hotmail.com

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