Hi All,
I have an unusual situation where I had a client who had set up an S Corp in PA while he was living there, and has since been completely nomadic and no longer has a permanent address anywhere; staying in Airbnbs, hotels, etc bouncing from state to state.
My questions are in regards to setting up a permanent address, what to do with the business in PA since he has zero presence there now. He has not yet started payroll and wanted to get him on payroll taking a salary but not sure which state to have him withhold from, and if I need to withhold PA taxes/UI from there even if he has no presence there or even an address at this point, however company is still registered there. 2023 am filing his personal with an AZ address (parents) however that is also temporary as his parents plan to sell that house soon as they moved to Oregon recently.
He creates content on social media so all of his income is virtual.
My thought was use a relative as a home-base and make that his "primary address", but that is now in Oregon and he has no presence there either aside from the occasional visit.
1) Should I dissolve the PA company at end of the year and form a new one in Oregon or Arizona (arizona would be 1-2 year temp)? If I wanted to start payroll soon, does everything need to be PA based?
2) Should I form one in a random state like Delaware or Wyoming and just use a registered agent address or form a virtual mailbox somewhere etc and track income throughout the year where he is at all times and get that in depth with it?
3) If I leave it as a PA Corp for now, do I need to register for payroll in PA? Can we say use Arizona for now and not register for UI/withholdings in PA even if that is where he legally formed?
Any other tips or pointers would be greatly appreciated as I am not too familiar with how to handle someone with no permanent presence anywhere.
Thanks
------------------------------
Matthew R. Savello, CPA
------------------------------