Accounting & Bookkeeping & Small Business Forum

[avalon]

Hi,

I've just incorporated in Wyoming (S-Corp). I thought it would be the best place to protect my privacy.

I live in Washington (state) and I operate an online business from home. I did some previous research before incorporating and I learned that I didn't need a business license since I'm on an unincorporated county area.

My websites are all in Portuguese and sell to Brazil in the Brazilian currency. The money is then transferred to me later, so I don't actually do any business in Washington state other than working in my home office.

I signed up for Quickbooks online and I was trying to set up payroll so I can pay myself, but it requires information of registration with the state for unemployment tax. Well, to get that I need to be registered with the state as a foreign company and get a business license. I really don't want to do that, if I knew I would have to register with the state I wouldn't have incorporated somewhere else!

Would it be legal if I pay Wyoming unemployment taxes or since I live here I have to pay those taxes to Washington state?

[dp1903]

Quote: signed up for Quickbooks online and I was trying to set up payroll so I can pay myself, but it requires information of registration with the state for unemployment tax. Well, to get that I need to be registered with the state as a foreign company and get a business license. I really don't want to do that, if I knew I would have to register with the state I wouldn't have incorporated somewhere else!

Would it be legal if I pay Wyoming unemployment taxes or since I live here I have to pay those taxes to Washington state?

You are principally located in Washington state. I don't see how you can be classified as a "foreign" company? I worked for a boot wholesaler/retailer and we did business with U.S. and Canadian businesses as well as individuals and businesses from France, England, and elsewhere. Some of this was done via the internet. But we weren't considered "foreign" by the taxing authorities in the state of Texas.

I would consult your home state tax office as well as Wyoming's to find out the proper method of paying taxes. I'd also contact the IRS to let them know you have changed the form of your business and what they need in the way of notification that you have. You may need a new employer ID number for quarterly and annual tax filings.

Consulting with a knowledgable CPA on all of this can help prevent headaches.