As your business grows, sells into new states, or hires employees outside your home state, state tax filing requirements can quickly expand. Many businesses discover too late that remote employees, economic nexus thresholds, or business activity in another state have created tax obligations they didn’t know existed.
Our State & Local Tax (SALT) professionals help you identify filing requirements, address potential exposure, and meet state tax obligations before they become costly issues.
Could your business have state tax exposure?
You may have state tax obligations if your business:
- Employs remote workers in other states
- Sells products or services across state lines
- Has customers located in multiple states
- Uses independent contractors in other jurisdictions
- Has experienced significant growth outside its home state
- Is uncertain where tax returns should be filed
A business does not need a physical office in a state to create filing requirements. Revenue, employees, contractors, and other business activities can all create tax obligations.
State & Local Tax Services
Multi-state compliance reviews
If you’re unsure where your business should be filing, we can review your operations, historical filings, and state tax footprint to identify potential issues and opportunities.
Our review may help you:
- Identify missed filing obligations
- Understand potential tax liabilities
- Evaluate voluntary disclosure opportunities
- Address compliance gaps
- Improve filing processes going forward
Nexus studies
Nexus is the connection between your business and a state that creates a tax filing requirement. We evaluate your activities to determine where obligations may exist, including:
- Income tax nexus
- Franchise tax nexus
- Economic nexus
- Remote workforce considerations
- Other state-specific filing triggers
Understanding where nexus exists can help reduce exposure and support informed business decisions.
Sourcing and apportionment reviews
States often have different rules for sourcing revenue and apportioning income.
We review how revenue is reported and allocated among states to help:
- Improve the accuracy of state tax filings
- Support tax positions during examinations
- Reduce audit risk
- Identify opportunities to strengthen reporting methods
Why businesses should review their state tax obligations
State tax rules have changed significantly over the past several years, particularly following the expansion of economic nexus standards and the growth of remote work.
A proactive SALT review can help you:
- Identify exposure before a state contacts you
- Reduce penalties and interest
- Understand where returns should be filed
- Address past compliance issues
- Support growth into new markets
Concerned About Multi-State Tax Exposure?
Whether you’re expanding into new states, hiring remote employees, or questioning whether you’ve met all filing requirements, our SALT professionals can help you understand your obligations, address potential risks, and stay compliant.
Not Sure Where You Need to File?
If your business operates in multiple states, has remote employees, or is experiencing growth outside its home state, it’s worth understanding whether additional filing obligations exist. Our SALT professionals can help identify potential exposure and discuss steps to address it.
Frequently Asked Questions
What is state and local tax (SALT)?
State and local tax refers to taxes imposed by state and local jurisdictions, including income tax, franchise tax, sales and use tax, and other business taxes.
What is economic nexus?
Economic nexus occurs when a business creates sufficient economic activity within a state to trigger tax obligations, even without a physical location there.
Can remote employees create state tax obligations?
Yes. Employees working remotely in another state may create filing requirements and other tax obligations depending on the state’s rules.
How do I know if my business needs to file in another state?
Factors such as employee locations, sales volume, customer activity, contractors, and other business operations can create filing requirements. A SALT review can help determine where those obligations may exist.