Sunday, August 2, 2009

Mutiple state sales through internet: do we (c-corp) need to file mutiple-state tax return?

Hello, we are a C-corp located in CA. During 2007, we had sales to Texas and Canada through internet. I was wondering if we need to fill out Schedule R for CA and file income tax in Taxes?? Also, what should we do with the international sales?? Thanks for all your help.

Mutiple state sales through internet: do we (c-corp) need to file mutiple-state tax return?
Yes; sorry to say, in the 41 States that have income tax. Tennessee and New Hampshire have tax on stock dividends. If you earn revenue in that state, you have to file income tax as well as all the excise taxes,etc. You will need to keep files on the estimated taxes you paid in, notices from the State, past corporation income tax returns to the States you do business in, etc.





You won't have to pay state income tax to Texas, but there is a steep 8.25% sales tax.
Reply:Unless you operated in a state other than CA, no you do not. Selling to a customer in a state is quite a bit different from having operations in another state.

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