Lesson 11 of 13
State taxation for corporations
State treatment is separate from federal and varies substantially.
What states charge
- Corporate income tax in most states, at their own rates
- Franchise tax or a minimum annual tax, owed even in a loss year in some states
- Sales tax collection where you have nexus and sell taxable items
- Payroll registration and withholding where employees are located
Operating in several states
Income is apportioned between states using formulas based on factors such as sales, property and payroll. Multi-state operations get complicated quickly and usually justify professional help.
Want us to incorporate for you?
You can incorporate directly with the state using the steps in this course. If you would prefer, Gullia Filing prepares and files the Articles of Incorporation, supplies bylaws and organisational resolutions, obtains your EIN and acts as your registered agent.