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Reciprocity with NJ is only for compensation. If she is operating a business in NJ even as a Sch C, she will have to file a nonresident NJ return as well as the resident PA return. She'll also have her professional licensing in NJ also since that is where she is operating. The LLC gives her liability protection but won't affect her income taxes if she is an SMLLC because it is disregarded. It will cause her to pay additional fees to incorporate and maintain that status though.

Copied from Accounting Today: "Previously, taxpayers mailed a paper duplicate copy of Form 3115 to the IRS and filed the original Form 3115 with their tax return. Under the new temporary procedure, starting Friday, July 31, the IRS will accept the duplicate copy of Form 3115 via fax to (844) 249-8134. The change will apply only to taxpayers who are asking for consent to make a change in accounting method under the automatic change procedure. This temporary procedure will be in effect until further notice. “Taxpayers will still need to submit two copies of the Form 3115 to the IRS,” the IRS said on its website Wednesday. “Taxpayers must continue to file Form 3115 with their tax return (including extensions). However, instead of mailing the duplicate paper copy of Form 3115 to the IRS in Ogden, Utah, taxpayers can now fax it to (844) 249-8134.” The cover sheet of the fax should include the following information: Subject: Form 3115 Sender's name, title, phone number, address Taxpayer's name Date Number of pages faxed (including cover sheet) The IRS cautioned that taxpayers should not include sensitive information on the cover sheet, such as an Employer Identification Number or Social Security number. The IRS won’t provide a confirmation or receipt of the fax. It advised taxpayers to check their fax transmission log to verify that all the Form 3115 pages have been sent."

I agree that she should register her business in NJ where she conducts business. If, she's going to register as a SMLLC or other entity. I'd also think that hair dressing requires some state licensing and maybe local health department fees/paperwork. Again, in NJ where the business will be conducted. If her biz is a NJ entity, the entity will file a NJ return. Then, unless a C-corporation, she'll have pass-through income to her federal return which results in a NJ non-resident personal return as well as her PA personal return. If a C-corp, she'll have a W-2 from NJ and still have the NJ NR and PA resident. As Judy says, the SMLLC won't give her much legal protection, especially since she's the one providing the services. So, she'll want a good insurance policy on her business (no matter what form it takes) in NJ. It's so much easier to "go up the ladder" to a more structured entity as time goes on and needs change. But, "going back down the ladder" usually has a tax impact if she decides later that she doesn't want the extra reporting requirements, costs, whatever of a formal entity. In fact, going from an employee to a business owner is a leap in the best of times. Has she really thought through what adding a new state into her regulatory and reporting mix will cost her in time and money?

And, register with the NJ secretary of state as a "foreign" LLC and get her insurance for her NJ location and any local biz licenses and board of health licenses in NJ. Register for NJ sales & use tax, probably. I don't have any NJ clients, but I would guess (with what I know about NJ) that there still is more paperwork, some annual. NJ has something funky about worker's comp for a SMLLC, or used to, maybe that owner has to opt out. Spend some time on the NJ websites for the SOS and Revenue and S&U Tax and Health Dept. and...

I appreciate all the well wishes. Feeling great now, continuing the weight loss (intentionally), and antibodies were very high on the first test. Already have my first appointment to donate Convalescent Plasma at the Red Cross on Aug 10. Will be able to donate every 28 days as I understand it. Maybe my antibodies will help someone else recover.

A little late responding, John glad to hear you and your wife are okay, unfortunately I personally know of the 15+ individuals that had it and some think they had it since early January 2020.