One of the most significant issues facing business owners is whether they need to register to do business (or qualify to do business) in a foreign state (a foreign state merely refers to a state other than that of the state in which the business is incorporated). This issue is often raised by the CPA when doing tax preparation or considering tax planning strategies.
If the business has sufficient nexus (contact with a state), it is subject to that state’s income, franchise, gross receipts, sales, or other tax. The explanation of nexus is beyond the scope of this post, but has been addressed in earlier posts.
Some business owners are reluctant to register to do business in a foreign state for a host of reasons. The reasons may include [Read more…] about TRUTH OR CONSEQUENCES – NOT REGISTERING LLC (OR CORPORATION) IN A STATE