AboutRichard Fritzler Expertise I am in the business of tax planning for business owners. Our company helps business owners structure so that they can be reduce the taxes that they owe, making them far more profitable.
Experience Since 1986 I have been helping successful business owners reduce taxes, protect assets, and limit their liability. The company is Owelesstax, incorporated at www.owelesstax.com
Organizations National Small Business Owners Association.
Nevada Association of Listed Resident Agents.
Citizens Legal Association
The Business Owners Institute
Publications Contributing author to "The Corporate Standard Newsletter".
I am also a writer for an email newsletter about business
Googlegroups/Successfulbusiness
I am also an Expert in the areas of Tax Law, Retirement Planning, and Estate tax issues.
Question My wife and I own a S-Corp manufacturing company and a LLC real estate investment company. Both are in North Carolina. If we move to Florida, do we pay state income tax on our total income to NC or to FL, where there is no state income tax?
Answer In your case it may not be an all or none. Having a House in Florida is 1 facet of residence, have a job is another. If you are taking salary, in NC then you are still a resident in NC. It can be more than 6 months in state that can be used as a claim of residence, but so is first day of a job.
I understand wanting to squelch a 6-7.75% state tax, but . . . that is only a small part of your overall tax bite.
There are better ways, even if you do get around the NC tax, you have done nothing about the payroll taxes. I know, the S-corp is supposed to reduce those. But really how effective has it been. If you believe it has been effective, you may not be playing entirely within the rules. It used to be conventional wisdom that you could at best cut the payroll taxes in half; from 15.3%. to 7.65%. But under the guidelines the IRS is promoting that probably is a valid claim anymore.
So why not go for a real solution? Why not take a real legitimate bite out of the payroll taxes, eliminate the state tax, be able to deduct ALL your medical expenses, live anywhere you want, AND cut your personal Income taxes too?
