I am President of a Chicago design firm (S-Corp) and I'm planning opening a new design office in Austin, Texas. I will move to Austin to head the new office but still oversee the Chicago office that will be run by two existing Managers.
Both offices will have similar make-up of staff and services. I think I therefore have the option to make either one the legal 'principle place of business'. I also have the option make the one a subsidiary of the other or a division of the other.
Considering the differences in tax between TX and IL, would it be financially advantageous (and legal) for me to make the new Austin office the principle office, and the the Chicago office a division? Or does the location of the principle office not really have tax implications on the company as a whole?