If your business is operating in multiple states – you are facing increased tax complexities with income taxes, sales taxes, payroll taxes and other taxes. I can navigate the state tax issues to help you understand your obligations.
Does my activity in another state create a tax liability? In tax terms – has my activity created “nexus”? Nexus, also called “sufficient physical presence,” is a legal term that refers to the requirement for companies doing business in a state to collect and pay tax on sales in that state.
This can be a very complicated issue. Let me help you review your company activity to determine your state tax obligations.
Variables affecting state taxation:
Each state has their own criteria.
Are you obligated for sales tax, income tax and payroll taxes? The answer will vary.
Whether you sell a product or a service has an impact on your nexus.
Installing the product or providing warranty service impacts nexus. Delivery method can impact nexus. Is product delivered in your truck or by common carrier?
Are you providing all the service in your home state? Some states look at where the client receives the benefit, even if most of the service was completed in your home state?
Entity classification can have an impact on the liability – are you organized as a corporation? S corporation? LLC? Partnership? Sole proprietorship? Where do the owners live?