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Okay, I hope someone can answer my question. My husband has a company incorporated in state A, where we used to reside. He is the only officer and only employee. We moved to state B but kept the company incorporated in state A, but the company address is our home in state B. Because of this, his company is eligible to enroll in a health insurance company in state B (which requires that your company "be located in" state B.

Now, my husband is working again in state A and for tax purposes would like to get an apartment, change his DL, etc, and become a resident of state A, while we maintain a house together (and our kids live) here in state B. He would come "home" every weekend. I would pay taxes on my income here in State B, and he would pay taxes on his income (which he receives as an employee of his company and represents 97% of our income) in state A.

Can the business still be located at our address in state B for purposes of the HI, he be a resident of state A and pay state A taxes (not state B)? I have checked and the taxes shouldn't be an issue, it is the HI that is the issue. Not sure if it is worth the trouble, but I would like to know if it is doable.

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3 Answers

up vote 1 down vote

For clarification, is the principal operating environment of the business state A, or B? IF it's state B, you would need to file documents for foreign qualification for the right to do business in that state (B), but foreign qualification would not generally allow you to take advantage of special benefits in that state. Likewise if you were to foreign qualify in state A, and register company in state B, you might be eligible for the benefits of state B. Operating a business in border towns is always very complicated.

I'll try and answer more concisely when you clarify.

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I doubt that anyone here can answer your question. You need to ask the health insurance company what its "located in" requirements are.

Disclaimer: This information does not constitute legal advice and does not establish an attorney-client relationship.

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Like Dana mentioned earlier, it's up to the specific rules established by the health insurance company. The HI company is probably going ask for documentation substantiating the existence of your husband's company like a Certificate of Incorporation or Certificate of Good Standing (you could find out then and there if they'll accept a CoI from state A), so it's best that you ask the HI company before going through the trouble of obtaining those documents. It may be possible that they would accept a foreign-qualified/registered company as bwasson suggested, so be sure to ask about that - you would need to obtain a certificate of foreign authority/qualification/registration or equivalent from state B.

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