Operating Your Business From 2 Different States
It is not uncommon for entrepreneurs to have a home base and work in another state. This is especially true if they are in the consulting, finance, or technology industries. It can be hard to establish a business when you are living in two different states, but it doesn't have to be. You just need to understand the challenges and figure out how to overcome them.
Your Home
When you’re ready to purchase a home in another state where you’ll be living and working part of the time, you’ll need to investigate properties in that state like home costs, the different neighborhoods and their amenities, and the availability of things necessary for your business like transportation, warehouses, storage, and human sources like vendors and possible employees and business professionals.
Then, you’ll want to hire a professional real estate agent who knows the area to be a resource of knowledge like schools, market value, and public services like libraries and parks.
As Jeffrey Nitz at Luxury and Beach Realty in St. Petersburg, FL., says, “one of the keys to making the home buying process easier and more understandable is planning. In doing so, you’ll be able to anticipate requests from lenders, lawyers, and a host of other professionals. Furthermore, planning will help you discover valuable shortcuts in the home-buying process.”
Making the Move
If you’re just moving across the state line, you may be able to do a lot of the move yourself with a truck from Penske, Uhaul, or Enterprise Truck and Van Rental. You may want to hire day movers to help you load and unload in each location. If you’re moving across multiple states, then it’s wise to hire a professional moving company. There are a lot of movers offering prices way below the standard rate, but it’s best to avoid those since there’s usually a reason they’re too cheap. Instead, use an online resource to check ratings and reviews from more established movers to ensure your things will arrive on time and undamaged.
If you’re still looking for homes to buy or rent, then place some of your furniture and business supplies in a self-storage unit. Like movers, you can also check prices for those online. For instance, if you’re moving to Southern California, there are a lot of options for storage units in San Diego that you can check prices on.
Setting Up Your Business so You Can Operate From Both States
The ability to operate from two different states is a great way for businesses to be able to take advantage of the benefits of both. For example, if you have an office in California and another in New York, you can take advantage of the difference in tax rates by either hiring employees from one state or the other or opening a branch in one state and operating out of the other.
You can use a single legal entity to do business in two different states. But you will need to register your business with the Secretary of State in each state. You will also need to file annual reports and pay taxes for each state you are doing business in.
The benefits of having a registered agent for your business are that they can help you with any legal concerns that may arise. They can also help you with tax-related questions and filings. They are authorized to receive legal papers on behalf of your business entity, whether it’s a corporation, LLC, or an individual. They are also responsible for being the point of contact for any government agencies and ensuring that all required filings are made on time.
Cost of Living
You’ll need to take into account the difference in the cost of living in one state or another. For instance:
- The typical home price in St. Petersburg, Florida, is $375,964
- The average price for a 10 x 10 monthly storage in San Diego is $167.00
- Per capita annual grocery spending in Raleigh, North Carolina, is $3,470
- Energy costs in Atlanta, Georgia, will cost, on average, $195 per month.
- Automobile insurance in Nashville, Tennessee, will cost you $702 for a six-month policy.
Whether you are a multi-state entrepreneur for business reasons like tax benefits or personal ones, like warmer winters and cooler summers, it’s possible to make it work seamlessly as long as you’re prepared and know the costs involved upfront.
And if your home buying takes you to the St. Petersburg, Florida area, contact Luxury and Beach Realty and let the professionals there help make your home buying experience the best it can be.