Legal Question in Tax Law in New Jersey

LLC start-up business in NJ

A question regarding a start up LLC in New Jersey. I live and plan to register my ''outdoor/adventure travel'' business in NJ. I will file both ''cert of formation'' and tax registration (NJ-REG) with NJ. Sole owner, in-home office with me being the only employee (hope to add employees / independent contractors at a later date). However, most of the trips will take my clients outside of the state (mostly in the NY and northeast). Since i will have income/sales from outside NJ, do I need to register/file anything official with NY or any other states regarding my business entity or for tax purposes?

What about remitting sales tax in multiple states? I'm not 100% sure but I think there is a reciprical agreement with NJ/NY regarding sales tax remittance??

Final question is in regards to hiring help. In order to ''guide'' you need to have a professional guiding license (in NY state). If I contact and retain a ''pool'' of license guides and pay them per trip, are they considered an employee or independent contractor? I would not provide training. I would only need them on occasion (~4/mnth). It would be at their discretion which trips they would guide. They are solely responsible for guiding my clients during the trip.

Thanks


Asked on 4/07/09, 5:37 pm

1 Answer from Attorneys
Ronald Cappuccio Ronald J. Cappuccio, J.D., LL.M.(Tax)

Re: LLC start-up business in NJ

You have a lot of great questions. Most likely, you will be required to register in New York as a foreign LLC. Depending upon the terms of the agreement with the guides and the actual nature of your business, the guides could be considered employees by NJ and NY. You will definitely be subject to sales tax laws of the states where business is performed. You will also have to pay income/business taxes.

Frankly, your business is complex and you need the help of a good tax and business lawyer to "guide" you!

I hope this helps!

Ron Cappuccio

http://www.StartaLLC.com

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Answered on 4/07/09, 7:59 pm


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