Incorporated in Florida but working in Georgia

[oceanlovin'ea]

I have a client with an s corporation in Florida. She is moving to Georgia and will be working there for now but she will also come back to Florida at times and work here. (She is a massage therapist).

I realize that the income she gets in Georgia will be taxable to Georgia.

Is it only through the personal return that the income will be reported to Georgia? Since an S corp is a flow through entity the corporation files a federal return but has no taxable income.

She doesn't want to close the corporation at this time. If for some reason this venture doesn't work out she may come back to Florida permanently (I hope). But time will tell. If the time comes can she transfer the assets of the existing corporation to a new corporation that she would set up in Georgia?

We are looking into buying her a tour size bus that she can drive down to Florida once a month and work for 3 or 4 days. (We hate losing our massage therapist,especially during tax season) Just joking....but an idea. She can have a moving office.

Thanks.

Linda, EA

[ChEAr$]

To keep all activities under the corporate aegis, she must register the corporation with Georgia secretary of state as a foreign corporation and then of course filing returns in both states, allocating net profit according to the three part formula, assuming of course that Florida subscribes to the uniform corporate treatment.