Living in More Than One State: Best Practices for Business Owners
If you live and conduct business in more than one state, how can you keep your life organized, save money, and avoid legal headaches? Modernly Real Estate Team is here to offer some suggestions. It’s not uncommon for business owners to live in more than one state. Perhaps you operate several businesses across the country. Or maybe you live in one state and operate your business in another and need to split your time between these two locations. Whatever your situation, check out the following best practices for multi-state living arrangements.
Consider Home Safety
Home safety is essential but can be challenging when you live in more than one place. How can you ensure your second home is safe and secure in your absence? Staying on top of home maintenance and repair tasks is one way to avoid safety issues. If possible, have a neighbor park their car in your driveway and collect your mail to make it look as if someone is home.
You’ll also want to purchase multiple home safety products to keep at your different homes. For example, you’ll need a fire extinguisher, a fully stocked first aid kit, and a contact list of local emergency services at each home. Take the time to read unbiased product reviews to ensure your home safety products will perform as expected!
Avoid Issues with Dual State Residency
If you’re not careful, living in more than one state can result in dual taxation. Baker Tilly explains that states determine residency based on where you spend most of your time. Residency audits do occur, so it’s not a good idea to claim residency in another state just for an income tax break. State auditors will review information like credit card statements, park admissions, airline records, official mailing addresses, and where you’re registered to vote. Make sure all of this evidence proves your residency in the state where you live for the majority of the year.
Hire a Registered Agent
You will need to register your business in each state you operate. You’ll also need a registered agent with a physical location in each state. Since you’ll be splitting your time between different states, consider hiring a registered agent instead of serving as your own. Your registered agent will serve as your point of contact with the state to ensure your business can be reliably contacted even if you’re out of town.
Keep an Inventory of Your Household Items
One of the hardest parts about living in two different places is keeping track of where your belongings are when you need to stock up on essentials. Maintaining an inventory is a great way to stay organized. This will help you record items that move between states as well as pantry items and toiletries that need to be restocked in each house. Keeping an accurate inventory of your things will also help you pack lighter when it’s time to move between homes!
Be Prepared for Cost Differences
When you live in more than one state, household budgeting can get challenging. Know what types of costs to expect for different things like home services, insurance, childcare, and groceries in different states:
● Storage options in L.A. cost an average of $211.86 per month.
● You can expect to pay an average of $1,544 per year for car insurance in Chicago.
● The average hourly rate for a handyman in Boston is $90.00.
● In Salt Lake City, child care costs an average of $15.28 per hour.
● Nashville residents spend between $168.30 and $351.90 per month for groceries.
Living in more than one state can sound complicated. Look for cost information in different states, hire a registered agent to handle your business responsibilities, and consider purchasing a few home safety items to protect your house while you’re away. Good planning will ensure you stay organized and keep your costs under control!
Are you looking for a home in Central Valley, CA? Modernly Real Estate Team can help you find the perfect place to call your own! Call today! 559-369-8216
