104: Multistate Income Tax: Understanding It and How to Get Prepared for It

If you’re planning to or already starting to do business across states, you’ve got to know what’s going on from an income tax perspective. A multistate income tax is different from a sales tax. And a multistate income tax can have a lot of different names attached to it depending on the state.  

Joining us today once again is Chris Mahler, CPA, who is also part of our TBL family strategic partner and compliance consultant. We dive into multistate income tax—what is it and how do we get prepared for it?

A multistate income tax can be complex, but it should not make you pay too much more in overall additional taxes. You're just going to be moving around what you pay to different states. There are a few caveats too that we'll discuss. The good news, there's always help out there as you navigate through all the potential pitfalls that are out there.

In this episode, you will hear:

• Understanding the franchise tax and the factor nexus
• The three types of nexus
• The thresholds for multistate income tax
• The minimum requirements for different states
• Things to consider when you’re a service provider
• The need for protective language in all your agreements

Supporting Resources:

• Episode 103: What To Know & Understand About Building a Team Across Multiple States
• The Bottom Line® Newsletter

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Keep more of your money & learn our Top 50 Tax Deductions and the details to legally create potential income tax savings right now.