Short background: We are a LLC (equal Partnership between 3 people), registered here in NY State. Our company / profession is musicians that travel around USA, performing at various venues. Our manager, who finds concerts and does all contracts is also based in NY state (NYC).
Our agreement with management is this:
For performances that are done in states that DO NOT withhold state taxes, the Manager gets the full gross amount from presenter, deducts the 20% commission and sends us the remainder of the fee.
For performances that are done in states that DO withhold state taxes (like CA), we the performers get paid directly by the presenter (gross amount MINUS the withhold tax), and then we have to send the 20% of the original gross amount to the Manager.
My question: In the scenario where we perform in a state(s) that DO NOT withhold taxes, and essentially we are paid always from NY State (from the Managers business account, who’s company is also in NY State), does it really matter then where the actual performance takes place? From what I understand, isn’t it based on where the actual job/business is performed, rather than from where you are paid?
I have one accountant telling me yes, and the other no. Anyone care to chime in with an opinion?
Thank you so much! Mike