When hiring a new employee in New York:
http://www.nysnewhire.com
http://www.tax.state.ny.us/prompt/wt/wttoc2005.htm

Handbook of New York State and Local Taxes:
http://www.tax.state.ny.us/pdf/stats/policy_special/handbook_of_new_york_state_and_local_taxes_november_2005.pdf

LLC fee schedule:
http://www.dos.state.ny.us/CORP/llcfile.html

NY LLC must "publish notice of formation" in two newspapers:
http://www.dos.state.ny.us/CORP/llccorp.html#dompub
There was a legal challenge to this for several years, but apparently on June 1, 2006 the requirement stands and all LLCs must publish within 120 days after the effectiveness of the initial articles of organization. LLCs formed between January 1, 1999 and May 31, 2006 inclusive are allowed until June 1, 2007 to publish.

To save newspaper space and the associated costs of publishing the notice, many LLCs publish a shorten version like this: "Name: NYX Traders, LLC, Arts. Of Org. Filed SSNY xx/xx/xx Off. in: Westchester Cty. SSNY designated as agent upon whom process against it may be served. SSNY to mail process to xxx Main St., City, NY xxxxx. Purpose: any lawful activity. #XXXXX.

"Name:" can be left off. Or replaced with "Notice of Qualification of" or "Notice of Formation of"

Articles of Dissolution - Domestic Limited Liability Companies

Within 90 days following the dissolution and the commencement of winding up the limited liability company, or at any other time that there are no members, a domestic limited liability company shall file articles of dissolution pursuant to Section 705 of the Limited Liability Company Law.

The completed articles of dissolution, together with the statutory fee of $60, should be forwarded to the New York State Department of State, Division of Corporations, 41 State Street, Albany, NY 12231.

The tax lawyers mess up LLCs:
http://busmovie.typepad.com/ideoblog/2006/03/the_tax_lawyers.html
An interest in a business (usually this applies to family owned businesses) can be transferred at a discounted value for estate tax purposes only if the business association statute under which the business was organized restricts transfer. In other words, it's not enough under the IRC that the business does so by agreement.

Domicile

Your domicile is:

the place you intend to have as your permanent home
where your permanent home is located
the place you intend to return to after being away (as on vacation, business assignments, educational leave, or military assignment)

You can only have one domicile. Your New York domicile does not change until you can demonstrate that you have abandoned your New York domicile and established a new domicile outside New York State. For more information, see the instructions for Form IT-201 or Form IT-203.

Permanent place of abode

In general, a permanent place of abode is a residence (a building or structure where a person can live) that:

you maintain, whether you own it or not, and
is suitable for year-round use

A permanent place of abode usually includes a residence your spouse owns or leases. For more information, see Tax Bulletin Permanent Place of Abode (TB-IT-690).

Rules for undergraduate students

Resident

You're a New York State resident for income tax purposes if:

your domicile is New York State (see Exception below); or
your domicile is not New York State but you maintain a permanent place of abode in New York State for more than 11 months of the year and spend 184 days¹ or more in New York State during the tax year.

Rules for military members and their spouses

Exception: If your domicile is New York but you meet all three of the conditions in either Group A or Group B, you are not a New York State resident.

Group A

You did not maintain any permanent place of abode in New York State during the tax year; and
You maintained a permanent place of abode outside New York State during the entire tax year; and
You spent 30 days or less (a part of a day is a day for this purpose) in New York State during the tax year.

Group B

You were in a foreign country for at least 450 days¹ during any period of 548 consecutive days; and
You, your spouse (unless legally separated) and minor children spent 90 days¹ or less in New York State during this 548-day period; and
During the nonresident portion of the tax year in which the 548-day period begins, and during the nonresident portion of the tax year in which the 548-day period ends, you were present in New York State for no more than the number of days which bears the same ratio to 90 as the number of days in such portion of the tax year bears to 548. The following formula illustrates this condition:

number of days in the nonresident portion	x	90	=	maximum number of days allowed in New York State
548

Nonresident

You're a New York State nonresident if you were not a resident of New York State for any part of the year.

Part-year resident

You're a New York State part-year resident if you meet the definition of resident or nonresident for only part of the year.

New York City and Yonkers

For the definition of a New York City or Yonkers resident, nonresident, and part-year resident, see the definitions of a New York State resident, nonresident, and part-year resident above and substitute New York City or Yonkers in place of New York State.

¹ Any part of a day is a day for this purpose.

http://www.tax.ny.gov/pit/file/pit_definitions.htm#note1

Yes, if your wage and tax statement(s), federal Form W-2 (Copy 2, Box 14) show(s) that an amount was deducted or deferred from your salary under a flexible benefits program established by the city of New York or certain other New York City public employees on your behalf, then include this amount on Form IT-150, line 14 or Form IT-201, line 23 or Form IT-203, line 22.

Note: For purposes of this addition, certain other New York City public employers include the following:

City University of New York
New York City Health and Hospitals Corporation
New York City Transit Authority
New York City Housing Authority
New York City Off-Track Betting Corporation
New York City Board of Education
New York City School Construction Authority
New York City Rehabilitation Mortgage Insurance Corporation
Manhattan and Bronx Surface Transit Operating Authority
Staten Island Rapid Transit Authority.

The following 414(h) retirement contributions shown on federal form W-2, Wage and Tax Statement, are taxable by New York State.

Tier 3 or Tier 4 membership in the New York State and Local Retirement systems, which includes the New York State Employees' Retirement System and the New York State Policemen's and Firemen's Retirement System.
Tier 3 or Tier 4 membership in the New York State Teachers' Retirement System.
Optional Retirement Programs for employees of the State or City University of New York.
Tier membership in the New York City Employees' Retirement System, the New York City Teachers' Retirement System, the New York City Board of Education Retirement System, the New York City Police Pension Fund, or the New York City Fire Department Pension Fund.
Membership in the Manhattan and Bronx Surface Transit Operating Authority (MABSTOA).

If you have a retirement plan in one of these categories, and you have a public employee 414(h) retirement contribution shown on your W-2, you must enter that amount on line 13 of Form IT-150, or line 21 on Form IT-201 or Form IT-203.

New York City http://nyc.gov
All businesses, incorporated and unincorporated, and individuals who conduct business in New York City are required to pay the applicable business taxes.

"New York City" is comprised of five boroughs (or counties): Manhattan (New York County), the Bronx (Bronx County), Brooklyn (Kings County), Queens (Queens County), and Staten Island (Richmond County). Since, in certain boroughs, town names are used, the following zip codes (1st three digits only) may also prove an indication of a NYC address:

Manhattan - 100, 101, 102
Bronx - 104
Brooklyn - 112
Queens - 111, 113, 114, and parts of 100 and 116
Staten Island - 103

Warning: New Jersey is so tax-unfriendly that beginning January 1, 2002 they have enacted a $150 per partner/member fee. For most solo-traders this is not a problem, but for larger partnerships this can be costly. Example: A Florida based LLC has 200 members. One member moves to NJ, thereby under NJ law requiring the LLC to file a NJ return listing all 200 members. Then if the LLC has any income or loss "derived from New Jersey sources" they must pay $150 for each of the 200 member totaling $30,000. There is a very narrow exception for trader status partnerships/LLCs "investment clubs" were the assets are less than $39,100 per partner. Hedge Funds have special rules as well.

LLCs and partnerships are subject to an $150 per owner tax if there are more than two owners.
Note: technically, NJ assess this tax against any LLC or partnership that has ANY nexus with NJ. NJ considers a NJ resident who passively invests $1.00 in a LLC or Partnership to be enough nexus to subject the entity to this per-owner tax.

Search to see if the entity name you wish to use is available in New Jersey: http://accessnet.state.nj.us/gatewaywatchnamesearch.asp
https://accessnet.state.nj.us/home.asp

Starting a Business in New Jersey
http://www.state.nj.us/njbusiness/start/
http://www.state.nj.us/njbiz/s_check.shtml

A corporation that provided administrative services to related entities was subject to a Pennsylvania township business privilege tax on management fees charged for those services because the corporation was considered to be offering services to the "general public or a limited number thereof."

Although the company provided its services only to other companies in its affiliated group, the other members of the affiliated group were members of the public and operated in the public arena. In addition, the township's regulations specifically stated that taxable gross receipts included receipts from sales made to affiliated business entities. The corporation's management fees did not qualify as exempt dollar-for-dollar reimbursement of out-of-pocket expenses because the fees generated revenue to cover the corporation's expenses, including overhead and other costs. The corporation determined its fee charges at the beginning of each year based on a projected budget and apportioned the fees among the affiliated companies according to the expected sales of the entities. Thus, the fees were not true dollar-for-dollar reimbursements.

Applied Tech Products Corp. v. Radnor Township, Pennsylvania Commonwealth Court, No. 44 C.D. 2005, July 7, 2005, ¶300-355

PA St. Tax Rep. at ¶255-110

From time to time people get audited. When this happens the examination is handled from Connecticut via telephone and fax or the file is transferred here (which sometimes, if we're lucky, "gets lost in the shuffle" before it arrives).

http://www.dos.state.ny.us/corp/crpfaq.html

Taxpayers requiring more assistance in their PLANNING, design and set-up of their trading business and with the PREPARATION or the REVIEW of their tax filings are encouraged to contact us for personally tailored tax advice at our normal rates.

What's needed to get started right away?

Write to us first with an outline your situation and what you are looking to accomplish (besides the obvious: lowering tax bill)

: GetMyNewYorkTaxesDone

Colin M. Cody, CPA, CMA
TraderStatus.com LLC
6004 Main Street
Trumbull, Connecticut 06611-2400

(203) 268-7000

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