National Profit: Multi-State Living Tips for Business Owners

If you own properties in more than one state, it can often be complicated trying to keep up with administration and keep down costs. Fortunately, with a few key tips, it’s possible to save money, improve your organization and keep your family safe in the process. This is a common situation for those that live in both Hawaii and other states. 

Taxes

For many of us with a business or residency that exists across state lines, it’s possible to adopt dual residency. This means an individual exists in two states simultaneously as neither temporary nor transitory, which can in turn affect taxation. Each state has its own jurisdiction as to who constitutes a taxable resident but it’s possible to fall into the trap of dual taxation, meaning both states could tax you on your income.

If you want to avoid this, you may need to change your residency - this will require assembling your documentation and potentially legal aid, but if your new state of residence has higher state sales tax or fewer public services, you may end up losing out in the long term. The key here is to speak to an advisor and carry out plenty of research in advance.

Insurance

Insurance policies tend to vary depending on local state regulations, so if you’re between locales, it often makes sense to review the available options and pick the one with more advantageous premiums. When it comes to auto insurance, some states/providers offer a discount if you complete a defensive driving course beforehand. You can browse defensive driving discounts and courses by state here.

The same rule applies to health insurance. Sometimes your insurance carrier will allow you to transition to a new plan in coordination with your move - if unsure, it’s always best to contact customer service and check with an assistant.

Administration

Multi-state living can also have far-reaching consequences for your business. For example, companies are required by law to appoint registered agents to every state they’re located in. These representatives will receive/respond to legal documents, tax information, compliance correspondence, and more. If you’re located in multiple states, you may find it makes more sense to appoint a single national registered agent company to ensure legal documents are handled with care and in accordance with state law.

You may also need to apply/re-apply for business permits and licenses. These vary in nature depending on the state, and to ensure you’re legally compliant, it’s safer to file these in advance. With so many changes in culture and legality, keeping your assets and your family safe is a high priority. There are plenty of products and services to help with this, just be certain to check for in-depth reviews from unbiased sources ahead of purchase.

Costs of Living

It always helps to have an overview of the cost of living depending on the state. Below are a few examples (per month, per individual) to give you an idea of how expenses can deviate across the country.

New Orleans, LA

• Average home price: $210,000
• Food: $545
• Transport: $94
• Salary (after tax): $3651
• Storage (5' x 10' unit): $76

Houston, TX

• Average home price: $192,500
• Food: $484
• Transport: $169
• Salary (after tax): $5581
• Storage (5' x 10' unit): $38

Nashville, TN

• Average home price: $298,000
• Food: $547
• Transport: $135
• Salary (after tax): $4658
• Storage (5' x 10' unit): $56

Miami, FL

• Average home price: $302,000
• Food: $609
• Transport: $142
• Salary (after tax): $4279
• Storage (5' x 10' unit): $66

San Diego, CA

• Average home price: $981,000
• Food: $596
• Transport: $176
• Salary (after tax): $5969
• Storage: These San Diego storage units are available for lower rates

Multi-state residency can often prove complicated and, if you aren’t diligent, expensive too. That’s why it’s crucial to research ahead of time and ensure that you understand how to make the best of both worlds.