I've Registered for Sales Tax or I've Registered for a Sellers Permit in a Particular State.

I've Registered for Sales Tax or I've Registered for a Sellers Permit in a Particular State. Do I have a state income tax filing requirement in that state the answer to this question is probably by purposely availing yourself to a state by registering yourself for a seller's permit and/or registering as a foreign entity and qualifying to do business in a state more than likely you're going to subject yourself to state income tax jurisdiction now does that mean if you're registered for seller's permits and thirty five or forty states that you should just go around and file 35 or 40 state income tax returns no the idea with compliance is understanding what your exposure is in different states and then registering or filing returns appropriately in order to meet the needs of your business so there's a balance between putting yourself in compliance and then making sure you're doing the right thing for your business and so what the important thing to do sit down look at the operations of your company look at where you're making sales and craft a multi-state tax strategy and a filing strategy that's appropriate to that and when we've done this for different businesses that we've worked with and when we deal with clients on the subject a lot of times the liability that they have the filing requirements that they have and what they end up doing is a lot less in scope than they initially initially thought so it's important to have a plan in place it's important to know that registering in one jurisdiction for a sales tax perspective is probably going to create a filing requirement in that jurisdiction and then managing and mitigating that situation appropriately you.


Sam Brotman, JD, LLM, MBA

Owner and Director of Legal
Brotman Law