Guest article provided by Vivek Mukherjee of inspiredexpatriates.net
Managing a business across state lines can be chaotic. However, it can also be advantageous. For example, you might set up your business in a state with more favorable terms and tax rates for companies, but then spend your time in another state with a lower cost of living. To make the most of the situation, you have to be strategic and organized. Today, Dana Lapointe of Xcellence Realty outlines precisely how business owners like you can leverage multi-state living in a way that will save time, hassle, and money.
Find the perfect place to call home wherever you are
Whatever state you live in, you want a comfortable place to call home. When choosing an area to live in, consider details like the neighborhood and proximity to amenities. Once you have a list of what you're looking for in a home, start shopping around. There are plenty of great options out there.
Set up your business structure and designate a registered agent
Once you have your homes organized, it's time to address the business side of things. Do your research when deciding where to register your business. Some states have more favorable tax rates and conditions for businesses. You’ll also need to choose a business structure. If you choose a limited liability company or LLC, you can take advantage of certain legal protections and tax benefits, as well as reduced paperwork. If you aren’t sure how to get started, no worries; an online formation service can make establishing an LLC in Florida a breeze.
Once you've formally established your business, make sure to designate a registered agent. This is a legal entity or person that's approved to formally accept correspondence, like lawsuits and IRS notices, on your business's behalf. This ensures nothing slips through the cracks when you're away.
Set up an organized system for tracking your business and personal life essentials
Once you have your personal and business life set up, it's all about maintaining order. You want to make sure you have access to important documents, like your health insurance info and business registration details, wherever you are. A cloud storage solution is a great way to keep track of everything. Also, keep a list of essential professionals you may need in either location. This could include healthcare providers, veterinarians, child care support, and essential services providers like plumbers and electricians.
Make the most of your multi-state living to minimize expenses
Spending time in multiple states can be a financial drain—unless you know how to play the system. For example, instead of paying for cable in two homes, pay for one streaming provider you can use anywhere. You can also comparison-shop between states for essentials like life, health, and auto insurance. Here are some other examples of how you can leverage your multi-state situation to save money:
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You may want to drop things in storage when transitioning between homes. Check out all the storage units and compare prices online to save.
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If you're renting instead of buying, consider differences in rental prices. For example, Numbeo reveals that rent in Boise, Idaho, is 9.91% lower than in Chicago, Illinois.
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Gas prices also vary according to location, even within states. In Wyoming, for example, gas costs $3.364 in Casper compared to $4.010 in Cheyenne.
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Child care is another major expense if you have kids. Again, costs vary even within states. In Nebraska, for example, the annual price of infant child care is $8,580 in Lincoln compared to approximately $10,400 in Omaha.
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Finally, don't discount how much food prices can vary between locations. According to Move.org, Hawaii has the highest food costs in the U.S., while New Hampshire has the cheapest.
Since you’ll need to stock each home with essentials, spend some time reading unbiased reviews of home products. You don’t want to waste money on products that are poorly designed and don’t meet your needs. Since you’ll likely be buying multiples of a given product, you want to make the best decision you can.
Multi-state living can be beneficial in many ways. That said, juggling multiple homes can be complicated, so it's important to be strategic. It all starts with the right place to call home. Working with a real estate professional like Dana Lapointe of Xcellence Realty to find a house is the first step toward happiness.