State tax laws continue to change rapidly throughout the country. Have you wondered about potential tax liability to other states? This survey asks just a few of the questions states ask when determining whether a business is subject to its taxes – income, franchise, or sales and use. The weight of interpretation given to specific questions may vary from state to state.
Thinking of the states other than those in which you are already paying or collecting and remitting taxes, answer the following ten questions for each of state.
- Are you registered with the Secretary of State?
- Do you hold a business license?
- Do you have fixed assets or leased property?
- Do you have payroll in the state?
- Do you have independent contractors working on your behalf?
- Do you make sales via the internet, an app, a catalogue, or by phone?
- Does your total revenue from the prior year exceed $25,000?
- Does your total payroll exceed $25,000?
- Do your total sales exceed $100,000?
- Does your total property, total payroll, or total sales exceed 25%?
If you answered “yes” to any one of these questions, it is possible that you have a reporting or filing obligation in the state. While a lot of business owners say the prefer to “roll the dice,” that strategy can be expensive. To learn more about your potential exposure in other states, contact us or your tax advisor.
Contact your Dean Dorton advisor or other professional adivsor for more information.
If you don’t have an advisor, but would like to speak with us, send an email to:
insights@deandorton.com