Sales tax nexus after Wayfair, taxability of services, multi-state income tax, and what a move or a remote workforce does to your state filings.
18 guides, each written by a CPA licensed in the US and Canada.
Since the Supreme Court's 2018 Wayfair decision, states can require remote sellers to collect sales tax once they exceed economic nexus thresholds.
Small Business & BookkeepingApportionment fundamentals: The three traditional factors: 1. Sales factor. The ratio of sales to customers in the state divided by total sales everywhere.
Small Business & BookkeepingService businesses that work with clients in multiple states may have nexus (tax filing obligations) in those states. The rules vary by state, but common.
Small Business & BookkeepingIf your business has employees, property, or significant sales in another state, you may owe income tax there. Covers economic nexus thresholds,.
Small Business & BookkeepingA business can owe income tax, sales tax, or both in states where it has nexus (a sufficient connection). Multi-state nexus overview.
Small Business & BookkeepingNine states have no individual income tax. Moving a business to a no-income-tax state eliminates state income tax but does not eliminate federal tax.
Small Business & BookkeepingSince Wayfair, each state sets its own economic nexus threshold, such as $100,000 in Florida and $500,000 in California, Texas and New York. Marketplace rules vary too.
Small Business & BookkeepingSales tax nexus comes from physical presence or passing a state's own sales threshold, such as $100,000 in Pennsylvania or $500,000 in Texas. Which sales count differs by state.
Small Business & BookkeepingRemote sellers must register and collect once they pass a state's own threshold, such as $100,000 in Florida or Pennsylvania and $500,000 in California or Texas. How to check.
Small Business & BookkeepingMost states exempt services from sales tax, but a growing number tax specific service categories. States that broadly tax services (most services taxable).
Small Business & BookkeepingSeveral states impose franchise taxes on LLCs, S-Corps, and C-Corps regardless of profitability. Major state franchise tax regimes: California: - $800.
Small Business & BookkeepingState nexus determines whether a business has sufficient connection to a state to be subject to that state's income tax, franchise tax, or sales tax.
Small Business & BookkeepingYou owe sales tax in another state if you have physical presence there or pass its own threshold, such as $100,000 in Florida or Pennsylvania and $500,000 in California or Texas.
Small Business & BookkeepingState income taxes can add 3-13% to a business owner's effective tax rate. State income tax rates (selected, 2025):. Covers economic nexus thresholds,.
Small Business & BookkeepingFranchise fees paid to a franchisor are treated differently for tax purposes depending on whether they are initial fees or ongoing royalties.
Small Business & BookkeepingHiring remote employees creates state tax obligations in every state where those employees work. State obligations triggered by a remote employee: |.
Small Business & BookkeepingRelocating a business from one state to another creates a complex set of tax consequences that go beyond simply changing a mailing address.
Small Business & BookkeepingRelocating a business triggers multiple tax considerations: moving expenses are generally deductible as ordinary business expenses under IRC 162 (though.