Establishing Domiciliary Residency: A Pet Sitter's Dilemma

In today's dynamic and mobile lifestyle, individuals like traveling pet sitters often find themselves navigating complex residency rules. One key question arises: if you have your name on a lease in one state and a utility bill and an LLC in your name in another, can you claim residency in the state where your LLC is registered if you are not physically present for extended periods?

Understanding Domiciliary Residency

Many states recognize the concept of domiciliary residency, where individuals can be considered residents even if they do not live in the state on a daily basis. The primary factor in establishing a domicile is the intention to make a given state your permanent home. This intent can be established through a variety of documents and actions, including a lease and a utility bill in your name.

Leases and Domicile

Having your name on a lease for a place of residence in a particular state is often a sufficient indicator of domicile. Although location alone does not automatically make you a resident, the state typically assumes that you intend to maintain your domicile there if you have a lease. The state would likely interpret this as strong evidence that you are actively maintaining a domicile in that state and therefore considered a resident.

Utility Bills and LLCs

While a utility bill in itself generally does not qualify as evidence of domicile, it can serve as supportive documentation. Similarly, registering an LLC in another state does not restrict residency in most states. An LLC can be registered in any state without being restricted to state residents. However, these alone are not enough to establish domicile; they should be coupled with a lease and other actions that indicate an intention to maintain a permanent home.

The Pet Sitter's Scenario

Your situation as a traveling pet sitter presents a specific scenario. You have a lease in State A and a utility bill and LLC in State B. You are not physically present for extended periods, but you maintain the lease in State A and the LLC in State B. The key question is whether you can claim residency in State B.

Given the residency requirements, if you have your name on the lease in State A and have taken no steps to remove your name from it, most states will interpret this as a strong indication that you intend to maintain your domicile in State A. Even if a state does not have domiciliary residency, the presence of a lease typically means you are considered a resident of the state of the lease.

California as a Case Study

California, known for its proximity to Nevada (often considered a tax haven), provides a common example of this issue. The Federal Tax Board (FTB) is particularly aggressive in scrutinizing individuals who attempt to establish domicile outside the state but still file taxes as residents. This scenario is very common among pet sitters who move frequently.

It is crucial to understand that state regulations may vary, and the final answer depends on the specific residency requirements of the states involved. Consulting with a legal or tax professional can provide personalized guidance, especially if you are engaging in complex residency maneuvers.

Conclusion

For individuals like traveling pet sitters, establishing a domicile can be crucial for tax purposes, licensing, and other legal requirements. Leases and other documents play a significant role, but it is essential to maintain clear intentions and actions that indicate a permanent home. Understanding the nuances of domiciliary residency can help in making informed decisions about residency and ensuring compliance with state laws.