We incorporated in DE and are registered as a foreign corporation in FL. We have three employees, all of which are employed via an employee leasing agency (so the FEIN on their W2 is the employee leasing company). Each employee works from home with one in FL, one in NY and one in IL.
Do we need to register as a foreign corp in NY and IL? Also sales tax in each?
Technically those are not your employees but those of the agency what officially employs them. As far as I see you hire the services of that agency, and those services are then provided to you by this agency's employees.
As such it only makes sense to assume that your company has no nexus in NY or IL, and therefore doesn't need to register to collect sales tax or form a foreign entity in those states.
With that being said, since I am not familiar with specifics of the laws in New York and Illinois regarding what would constitute "nexus" and what wouldn't, so its a good idea to consult attorneys licensed in NY and IL. I would suggest you to consult our contributor on law related questions Roman Fichman Esq. (see his ad on the right), since he is licensed in NY, and he would be able to advise you further.
You are welcome to contact us directly via email or chat if you have any additional questions or want to get assistance with placing an order.
Good luck with your business,
Robert Kowalski @
Robert on Google+
This post has been written for educational purposes only and was not
meant to be legal advice and should not be construed as legal advice
or be relied upon. The post may contain errors, inaccuracies and/or
omissions. You should always consult an attorney admitted to practice
in your jurisdiction for specific advice. This post may be deemed as
Attorney Advertising. IncorporationAnswers.org do not assume any
responsibility for harm or damage resulting from the use of this
information in any way. For more information please see our Terms of
Please note that according to IRS Circular 230 to ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this writing was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any matters addressed herein.