Basic Training: Bringing ‘Bling’ to Your Business Formation?

Posted on October 17, 2016 in Form a Company

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So you start your business from home. Makes sense, so you can keep costs down. But then you realize that your home address–nay, your home state–lacks a certain cache. What to do?

Q: I currently have a business in Michigan. I am looking into e-commerce; however, my product is a fashion item. Unfortunately, the state of Idaho is not the fashion hub of the world. As a result I recognize negative implications of having my address on my web page and my shipper information reads Boise, Idaho. What are my options short of relocation to get my address to read N.Y. or Miami?

A: The only way to legitimately have your address read N.Y. or Miami is to have some form of business presence there. This doesn’t mean you need to physically relocate your business. However, if you start to use either of those addresses (N.Y. or Miami), you would have to register to do business in those locales, plus you then would be on their radar for paying taxes.

Before you make the switch, you may want to do a little digging/research to see just what kind of impediment is really would be (in terms of $$) to remain in Idaho. Idaho may not be the fashion hub of the world (yet), but given that your potential customers will be purchasing online, it may not make much of a difference to them where the product comes from (unless association with N.Y. or Miami will form the basis of your marketing). If it does, speak to your accountant about the fees and costs (from a tax perspective) associated with having a presence in NY or Miami–you may find that the additional sales you generate could well outweigh the additional tax and cost burdens.

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