Taxes

State Corporation Income and Franchise Taxes

Forty-five states impose a direct tax on corporations, measured at least partially by net income. Michigan, Nevada, South Dakota, Washington.

A state is empowered to tax any net corporate income attributable to in-state activity no matter where the corporation is headquartered. Corporations must apportion their income among the states where they have a sufficient connection (the legal term is nexus) and pay tax in each of those states. Several states tax unincorporated businesses separately.

About the author

infoner

Add Comment

Click here to post a comment