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You've got some big states, with big tax laws, in that list. I'm with Tom. You really need a decent accounting firm to help you through this one. Not only does it affect licensing, but it will have a tremendous impact on your tax situation in each state as well. MaryAnnBusiness Plan MasterStart and Finance Your Business Now ---This post was edited to remove a commercial link. Read our discussion policies for more Community best practices.

You can register businesses using the home address, especially if you are not going to have any additional employees based out of that address, besides that individual you are hiring, if that's what you want to do. You may need to use an experienced tax consultant or accountant (with experience in multi-state tax filing), for filing corporate taxes. The salary for the PMs may, however, be processed out of your HQ, or main office, as it would the responsibility of the PM to file a multi-state income tax return, at the end of the year. The PMs can also claim tax exemption on amounts equivalent to the cost allocated or apportioned to the floor area used for such employment related activity. The PMs can additionally claim as tax deductible, their mileage for business use, and/or actual expenses incurred in travel for employment or business purposes, so long as it doesn't constitute commuting. If you go to the state websites, of the respective states in your list, you should be able to navigate to the pages that give you info about the taxes. e.g. for Massachusetts - http://www.mass.gov/?pageID=mg2constituent&L=2&L0=Home&L1=Business&sid=massgov2 for New Jersey - http://www.state.nj.us/treasury/taxation/online.shtml Hope these help.

What will your project managers be doing? Are you sure there is no way for you to have them be independent contractors?Are these going to be permanent positions or are they temporary?   You say that the project is in Texas but the PMs are located in all these different states - or do you mean to say that you are going to have separate projects in all these other states?   I think I need additional clarification because if I'm understanding the structure properly, it seems like these PMs should be ICs. But, you should double check the IRS definition of an IC - http://www.irs.gov/newsroom/article/0,,id=173423,00.html   If you register your business in all these states, this will mean that you will need to file tax paperwork and do all the employee deductions in all of these states. Are you sure you want to go through all of that? Are these project lucrative enough for you to justify all this work?     

Hi comresource, Have you had a chance to check out Business.gov's Steps to Registering a Business? It gives you some good links and directions to registering you business, including tax, license, and permit information. Take a look at Small Business Taxes- it might shed some light onto all the different tax laws that you're looking into. Since you are looking into so many different states, you should definitely contact an accounting firm, as BusPlanMaster and ockclaw suggested. Best of luck!

I wonder if a moderator would have more information. Ultimately, it is a lot easier if they are all considered contractors, because they would simply be paid and sent a 1099 and liable to pay local and federal taxes, however if they are full time employees - I am not sure what all the parameters would be in this instance. You may need to get some advice from an experienced accountant firm or something. Tom Addison Lawsuit Loans

Excellent points. The laws vary so often, and it depends whether you will actually sell products and/or services. It would definitely be best to look to a local accountant or financial advisor Tom Wilford Ockclaw Message Edited by NicoleD on 09-30-2009 01:42 PM