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I thought perhaps I could structure it so that my income counted as WA income and thus avoided tax. For instance if I am the CEO or something of this company and get paid $85k per year from it, but I do all my work from WA, couldn't it be said that I am earning the income in WA rather than MN?

There's a general principle in tax law that substance trumps artifice. Minnesota is a pretty high-tax state and very agressive about enforcing it. Were I a Minnesota tax official this would smell suspisciously like fraud. Exactly what is this CEO, who just happens to be the sole shareholder in this corporation earning rental income in MN, doing from Washington to earn his keep? Or is he really working on the sly in MN and evading MN individual income tax? Regardless of how it plays out, I'd be salivating. It's going to be MN source income, and it's going to be taxed by MN one way or the other. Steer very clear of anyone who tries to convince you otherwise, especially if they're peddling Nevada corporations.

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