In addition to U.S. Federal tax concerns, companies operating in the United States must concern themselves with state tax issues. It is important to note that each state has its own set of laws and regulations related to the taxes mentioned above. Accordingly, there are 50 sets of rules relating to the above taxes plus local concerns, depending on the jurisdiction.
State taxes have unique issues since, while many countries have treaties with the United States, the individual states do not have such treaties. Accordingly, while a non-U.S. entity may not have a tax consequence for Federal Income tax purposes, they may very well have a tax consequence for state tax income tax purposes, depending on the structure.
Sasserath & Zoraian, LLP can assist you to implement your business strategy while minimizing the state and local tax burden. Since business objectives typically override tax objectives, our goal is to help you to devise a plan and strike a balance between the two objectives to maximize your after tax returns.
The litmus test for state filing requirements, be it State Income/Franchise Tax or State Sales Tax is known as nexus. While there are some general theories as to what constitutes nexus and how income is taxed in a particular state, each state has their own laws and regulations related to these theories.
Want to learn more about how our state and local tax services can help your business save money? Give us a call at 631-368-3110 to schedule your free initial consultation.