A Business Owner’s Guide to Managing Two Houses
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Managing multiple properties in different states is a tough task, to say the least. Additionally, if you’re a business owner, focusing on the upkeep of both properties can occupy crucial hours which you can instead dedicate to work. But, having multiple homes can also provide some advantages to your business. In this article by KDM Real Estate, we’ll explore the best practices business owners can follow to balance their work and home care needs.
Incorporate the Business in Your New State
Given the prominence of online sales, the majority of businesses now sell products to customers across state lines and even internationally. But they are subjected to paying taxes in their home state. As a homeowner in two states, you should research which state provides better terms for your business. Key metrics to look at include the corporate tax rate and yearly filing fees. Nevada and Texas are two of the many states in the country which do not impose a corporate income tax, which potentially saves the business thousands of dollars a year.
Hire Professional Help
Trying to manage two homes single-handedly is not the best option. For instance, if you spend limited time in the second home, consider hiring a property management company to look after its upkeep and find renters to occupy the home when it’s vacant. Through this method, you’ll be able to generate a second stream of income and ensure the home remains in good condition.
If you do plan to travel frequently it’s best to hire a registered agent to receive official business correspondence such as notices, subpoenas, and tax-related documents on your behalf. This will help to ensure the business remains compliant with state regulations and requirements.
Don’t Compromise on Security
To keep your property and family safe from bad actors, consider installing the following products in both homes:
Video Door Bell: Whether you’re at home or not, a video doorbell will record all activities in and around your main entrance. Additionally, most newer models include functionalities such as two-way talk and night vision.
Motion Activated Garden Lights: These are a great addition to your backyard and porch, especially when no one is at home. As the name suggests these will be activated when someone enters the space, which can act as a good deterrent for thieves or animals.
As there are various brands in the market selling these products, take the time to conduct thorough research regarding the ones that work best, are reliable, and provide the best value for your money.
Learn About the Cost of Living
Along with business benefits, you’ll need to consider other financial impacts of choosing to live in a particular state. Below, we compare the cost of living in five prominent locations across the country:
Georgia: The average yearly cost of living in this state is $38,165, as reported by Sofi, with housing and utilities amounting to $7190/year, healthcare costing $5910/year, and energy costs totaling around $780/year.
California: The monthly cost of living in the golden state is $3886. Utility costs in California are lower than the national average, with residents paying around $100 in monthly electricity charges. Additionally, storage costs are reasonable as well, with these San Diego storage units costing between $120-$300 a month.
Delaware: As reported by Best Places, the cost of living in Delaware stands at 102.7, making it slightly higher than the national average. However, along with business-friendly policies, residents enjoy affordable transportation, groceries, and housing costs.
Texas: The lone star state is becoming a popular destination for many as it has numerous cities such as Dallas, Corpus Christi, Fort Worth, and more, providing a cost of living (including groceries, housing, and utilities) significantly lower than the national average.
Alabama: A home in Alabama, on average, costs $67,700 less than the national average. Additionally, residents pay 13.6% less on goods and service expenses compared to others across the country.
When it comes to managing multiple houses, using a property management company and renting storage spaces when needed are two of the best avenues to explore. Additionally, for your business, choose the best state for incorporation and hire a registered agent.