LLC in NJ while working in NY

You can set up a LLC whereever you want and it is a legal procedure as long as it is registered to do business in the state. However, you say you "work from home" in NYS which means your income derived from this business is subject to NYS income tax, and if you are a City resident, NYC tax. Using an LLC from out of state may get you into hot water in NYS if the taxing authority decides your out of state company is for the sole purpose of avoiding state income tax. The fines and penalties for that can be quite substantial. If most of your business will be from New Yorkers, you are best to file the LLC in NYS. I believe my law firm can help negotiate a somewhat smaller publication fee.
On my profile there are several legal guides. I recommend reviewing the following which may be helpful to you:


Hiring a lawyer; Is it Legal? Is it Illegal?...Understanding the different court systems;
Introduction to Legal terms used in litigation; Limitations on a Lawyer’s License: What a Lawyer Can and Cannot Do……………………………..…………………………..


New York City: A Guide to the Courts……………………………………..

Commercial litigation: How to Handle a Dispute
Taxes, Regulations, Appeals, Problems and Representatives .



How to Succeed Business by Really Trying: Wise Moves and Dumb Moves
How to Lose Your Money in Six Easy Steps…………………………

Our law firm may be able to assist you in this legal matter. You can access our contact information at our website: www.sarnoanddefelice.com or my avvo profile.


LEGAL DISCLAIMER…………………………………………………………………..
Mr. Sarno is licensed to practice law in NJ and NY. His response here is not legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Sarno strongly advises the questioner to confer with an attorney in their own state to acquire more information about this issue.

I encounter this question frequently with my clients. From what you are describing, as mentioned before, there are possible adverse tax conbsequence to be sure. In addition, by setting up in NJ, you might be exposing yourself to liability if your business is really located/conducted in NY (that may depend on the actual nature of your business). However, as an example, the owners of a bakery with a location and delivery routes in NY that either do not have not a NY entity (e.g., LLC) or an entity "qualified" to do business in NY might be personally liable for a lawsuit against them. For your NJ LLC to "qualify" to do business in NY, you will have to undergo the publication process as if you had formed the LLC in NY in the first place. My advice to you is to take heed of the above example and be assured that your need for liability protection in NY is minimal, before taking your proposed route.

I hope that helps.

Disclaimer: This answer is for informational purposes only and does not constitute general or specific legal advice, nor create an attorney client relationship.