Where is your buisness 'tax home' — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Where is your buisness 'tax home'

Get PDF file

by on
in Small Business Tax

Q I’m starting an Internet-based business with my  brother. Since our state of incorporation can be virtually  anywhere, should we incorporate in Delaware as  our home state for income tax purposes? D.J., Boulder,  Colo. 

A No. Large companies often incorporate in Delaware for  legal reasons, but that has no impact on federal income  taxation. Talk to a business attorney and a tax pro to see if  it’s necessary for your situation. Tip: Regardless of your  home state, you may face state sales tax liability if you  have customers or engage in activities in other states.

Related Articles...

Leave a Comment

Previous post:

Next post: