Hi -

I am in the process of forming an S corp for my recruiting business.
I am a US citizen currently living outsing the US.I am considering setting up an LLC in Florida and electing S corp status. I was advised to use Florida since there is no personal income tax.
However, I would like to have any mail and a bank account set up in NY since that is where my brother lives and he can help monitor these matters.

Does the fact that I will have mail sent to a NY address and a bank account in NY create any real risk that there will be NY tax - both on S corp and on me personally?

Thank you.

“Does the fact that I will have mail sent to a NY address and a bank account in NY create any real risk that there will be NY tax - both on S corp and on me personally?”---->I do NOT think so UNLESS you have taxable income that you earn in NYC. People living outside the City are not subject to NYC personal income tax. Only NYC residents are subject to NYC income tax.;however, you need to pay tax on interest income earned on your money in the bank account in NY. You may be required to make estimated income tax payments to the IRS/ New York State if you receive certain types of taxable income not subject to withholding (such as interest, depending on the amount of the interest income that you receive etc.). As you incorporated your LLC elected to be taxed as an S corp in FL state and have no any taxable income that you earn in NYS(or NYC), you do NOT need to pay tax to NYS/NYC.Since your business is NOT incorporated in New York State or does not do business or participates in certain other activities in NYS, you do not have to file an annual NYS corporation tax return.

Thank you for the response. Sounds like the only potential trigger for filing a NYS tax return is if I have NYS source income at some point.

“Sounds like the only potential trigger for filing a NYS tax return is if I have NYS source income at some point.”----->Correct;you need to file NYS return to NYS as long as you earn income in NYS whether or not you are a non-residnet/ part year resident of NYS. New York source income is the sum of income, gain, loss and deduction from: services performed in New York State ; real and tangible personal property located in New York (including certain gains or losses from the sale or exchange of an interest in an entity that owns real property in New York State) ;a business, trade, profession or occupation carried on in New York State ;a New York S corporation in which you are a shareholder;a distribution of New York partnership, income or gain ;your share of NYS or trust income or gain ;New York lottery winnings if the prize was won on or after October 1, 2000, and the total proceeds of the prize are more than $5,000 ;any gain from the sale, transfer, or other disposition of shares of stock in a cooperative housing corporation in connection with the grant or transfer of a proprietary leasehold, when the real property comprising the units of such cooperative housing corporation is located in NYS.