Gwinnett CPA on Determining Where Your Business Should Pay Its Taxes/Have State Payroll Withholding
Risk Management 101
Being aware of where and when to incorporate and where your business/company should pay its taxes and have payroll withholding on its employees, will provide you with needed insight to avoid unnecessary pitfalls, fees, and legal issues that befall many. There is a lot of hype out there about where to incorporate that may well lead you to discover that the steps you made to protect your business while in good faith, have caused complexities that hurt rather than help your business. In general there are several criteria to evaluate when considering where to originally incorporate/domicile your business as well as where to have your business do state withholding on its employees. All the criteria should be looked at in aggregation to consider including:
Base Business Operations – Where your business actually earns money and produces income is a critical component to consider in determining where your business should legally domicile and register. For example if your headquarters is in Georgia, you would incorporate in GA absent any other substantive issues. However if your business transacts business operations in other states you would want to consider registering your corporation as a foreign corporation in that other state. This designation does not register you as a foreign corporation to the U.S. but to the state where you are transacting business and have substantive business operations.
Employer/Employees – For all states where you have employees you will want to be sure to register and incorporate in those states whether you have an office in that state or even if you solely have employees who work out of their homes in those states. Generally speaking if you had an employee who was in a state for a very brief amount of time, then it would be cost disadvantageous to comply with all of the applicable state laws. As such, it is prudent to work with a CPA/your attorney to determine a wise and judicious Risk Management Policy.
Office/Physical Location – For all locations that your business has a physical location and on-going physical presence, you will want to register your corporation as doing business in that state. This would also likely ensure/require you to do state withholding in those states where you have employees and to withhold state income taxes and pay appropriate state and local income taxes.
Having a sound risk management plan is an integral part of the incorporation/registration process and is tantamount in making wise and informed decisions.
Contact HIS CPA PC (A Christian CPA Firm) today.
John Dillard is an Christian Speaker/Author and Certified Public Accountant. To See how he takes Christ along with him to work visit http://www.hiscpa.com/ and for his latest book Overcoming Life’s 9/11′s: Job’s Journey and a Voice of One: Nehemiah’s Prayer or call John Dillard CPA today at 770.814.9304 (All Rights Reserved) Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!
We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Bookkeeping.
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