How to Prepare for Multi-State Living: Tips for Business Owners
Sometimes it makes sense to live in more than one state. If you run a business in another state, for example, you might have to travel there frequently. Buying a home near your business location can make it easier to manage a long-distance business because you’ll always have a comfortable place to stay when you’re in town. Of course, multi-state living comes with its own set of complications and costs. Here are some tips from real estate company Tuscana Properties to help you prepare!
Choose a Registered Agent for Your Business
States require that businesses appoint registered agents to serve as a point of contact in the event that legal or tax-related documents need to be delivered. If you’re going to be traveling out of state often, be sure to hire a registered agent to handle this task for you. You can find many registered agent services online that can fill this role. Just be sure to review their experience, talk to current or past clients, and ask insightful questions before choosing your registered agent. You’ll also want to check the specific rules that apply to businesses in your state.
Look for Ways to Save on Airfare
If you’ll be traveling between your homes frequently, costs can add up quickly. Take advantage of every opportunity to save on your airfare costs. For example, DoughRoller suggests closely monitoring flight prices before booking, using frequent flyer credits to save on fees, and flying with a carry-on bag to avoid checking luggage. Since you should have everything you need to live comfortably in your second home, traveling light shouldn’t be too much of an inconvenience!
To save even more money on frequent interstate trips, remember to deduct your travel expenses from your taxes. When you travel for business, you may be able to write off expenses, including airline tickets, baggage fees, rental cars, road tolls, ridesharing services, and public transportation. Just be sure to read IRS guidelines around deducting travel expenses to ensure you only claim expenses you are entitled to.
Offset Costs With a Short-Term Rental
Another way to save money on multi-state living is to rent out your homes on a short-term basis while you’re away. You can always hire a property management company to manage your short-term rental for you, so you don’t have to be involved in booking, cleaning, or managing this side business. If you don’t mind serving as your own property manager, be sure to take advantage of digital tools to make your life easier.
Prepare Your Household Budget for New Expenses
Before buying a second home in another state, ensure your household budget has room for additional expenses. Take the time to research cost information for the state you’re considering living in so you can create an accurate financial plan.
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Before buying a second home in another state, make sure you’re ready for multi-state living. Choose a registered agent for your business, re-evaluate your household budget, and identify opportunities to reduce the cost of living in two homes. Good planning will ensure that multi-state living works for you!
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