Advice on Income Taxes for the "Virtual Office"

Silas asks: "I've been working for a website development firm in Indiana, but will soon be moving from Indiana to Ohio. From Ohio, I'll continue to work for that Indiana-based firm via phone, e-mail, and the occasional commute. I'm wondering what the implications are for income taxes - namely, am I living and working in Ohio, or am I living in Ohio and working in Indiana, or some weird mutation of those? Any advice from others working in similar 'virtual office' situations?"

"Some additional info is below for IANAL and IAAL readers alike:

• The firm is an LLC based in Richmond, Indiana. I'm moving to Cincinnati, Ohio.
• I am an owner/partner of the firm, so my taxes are paid as quarterly estimates instead of being drawn from each paycheck.
• I'm interested in legally minimizing the chunk of income that the gub'ment gets.
• I'm interested in keeping my tax return as simple as possible.

Thanks for any assistance you all can give me on this matter."

Comments

Don't Panic!

[sysadmn]

You have nothing to worry about. I live in Cincinnati. Mark Twain(!) noted that if the world were going to end, he'd want to be in Cincinnati, since everything arrived there 10 years later. So you've got 10 years before the taxman knows you're here.
Better yet, a newspaper columnist noted that Cincinnati was once the very model of 19th Century German Liberalism - and still is! Heck, they didn't even HAVE income taxes in the 1800's!