As an entrepreneur, your business’ success is clearly a top priority. However, you also want to make sure you’re enjoying your personal life when you’re not on the job. Multi-state living is one way to get the best of both worlds. You can set up shop in a state with favorable business conditions while living in your preferred location—for example, by the beach. This guide provides tips and tools to help business owners manage multi-state living.
Decide where to live versus where to work
Do your research when deciding where to live versus where to work. For your personal life, consider characteristics like proximity to amenities, natural scenery, and closeness to friends and family. A realtor can help you find a house in your preferred location. For example, Sandra Sells The Shore specializes in beachfront locations.
When it comes to where to set up your business, consider things like tax rates. For example, according to the Tax Foundation, Wyoming and South Dakota have favorable tax rates for business owners. Wherever you set up your business, make sure to formally register it with the state and get a registered agent. This is a person or entity that can accept official mail, like legal notices, on your behalf.
Create a plan to stay organized between your two locations
Keeping track of your personal life and your business when you’re going back and forth between two locations isn’t easy. Trust technology to simplify matters. For instance, you can use a phone scanner app to digitize all of your important documentation, from your business paperwork to your health insurance documents. Then, you can upload all these items to a cloud storage platform, so you can access them wherever you are.
When you’re juggling two locations, you also want to make sure you have everything you need in terms of home goods. Before you buy things for your house, read online reviews from real-world consumers. This way, you can be sure you’re getting honest feedback and can buy your products with confidence.
Find ways to save money with your multi-location living arrangement
You might think that multi-state living will be a financial drain. In fact, it can help you save money in the long run. For example, you can register your car in the state where it’s cheaper and buy health insurance in the location with the more favorable rates. Here are some other ways you can save:
- Compare the cost of living between states using calculator tools like Living Cost. For example, the average cost of living for a single person in Delaware is $1,876, compared to $2,417 in California.
- You may want to put items in storage when switching back and forth between homes. Research storage prices online. For example, check your options for San Diego storage, with prices as low as $105.
- If you have kids, consider daycare costs too. Child care for an infant costs $865 per month in Iowa compared to $935 per month in Kansas, for instance.
- Consider the costs of perks like dining out too. You’ll pay 3.5% less for restaurant meals in West Virginia than in Texas, for example.
- Gas prices are another factor that can vary even within a state. Regular gas costs $3.561 in Albuquerque compared to $3.623 in Las Cruces, for example.
Running a business in one state while living in another state may seem chaotic at first. However, it can benefit you in the big picture, like by helping you save money. Just make sure you’re taking an organized approach as you set up your multi-state living arrangements. By taking steps like designating a registered agent now, you can save yourself time and stress later.
Get more tips on setting up the perfect living arrangements with the blog.