How Multistate Taxes Affect Businesses of ALL Sizes
Are you a start-up business? A mid-sized business? Or a Fortune 500 company? No matter the size of company, it doesn't really matter when it comes to state and local taxes. If your company is doing business across state lines, your business is impacted by multistate taxes.
Common questions and issues:
- Is my company required to register to file returns and pay income taxes?
- Is my company required to register to collect and remit sales and use taxes?
- Property taxes?
- What credits and incentives is my company eligible to obtain?
- My business operates as an affiliated group of multiple entities. Does the state require us to file separate returns or one combined return?
- How are intercompany transactions treated? Do we have to addback intercompany expense deductions?
- Is my affiliated group of entities unitary?
- Does my affiliated group of entities need a transfer pricing study?
- Are sales of services sourced differently than sales of tangible personal property?
- What types of sales are included in the apportionment factor?
- How are sales determined? Gross sales or net sales?
- Our company sales a service and a product. Are we required to collect sales tax? If so, on the whole charge or part of it?
- Our company has foreign (non-U.S.) operations. How does that impact our state returns?
- Our company is a foreign based company (non-U.S.) with operations in the U.S. If we don't have a permanent establishment in the U.S., are we still required to file state income tax returns?
- How will changing the ownership and/or organization structure of our affiliated group of companies impact our state tax filing requirements?
- Do we owe sales tax on the purchase of a company's business assets? Is there a bulk sale notification requirement?
- If our company buys the assets of another company, are there any real estate transfer taxes due?
- When can our company remove our FIN 48 reserve for uncertain state tax positions?
- If our company owns an interest in a partnership, does that ownership interest give our company a taxable presence in the states in which the partnership operates?
- If our company sells assets or liquidates a division of our company, is that treated as business or nonbusiness income?
Brian Strahle is the owner of LEVERAGE SALT, LLC where he provides state and local tax technical services to accounting firms, law firms and tax research organizations across the United States. He also writes a weekly column in Tax Analysts State Tax Notes entitled, "The SALT Effect." For more info, visit his website: www.leveragestateandlocaltax.com
You can reach Brian at email@example.com.
Because state and local taxes are deceptively simple and endlessly complicated.