Businesses often operate in multiple states and while the income tax liability is often not significant it can add complexity when preparing the business tax return. It is important to determine what income is taxable to a state and what deductions can be allocated against that income. Often a company will need to apportion their sales, payroll and property and equipment to the various states.
State and local governments are actively passing legislation and regulations on a continuous basis. Navigating the intricacies of the laws of multiple jurisdictions can make compliance difficult for any business. Your tax professional can help with assessing your compliance with the laws and regulations. They can also help to reduce your cost of doing business.