State Taxes

Learn more about keeping your business compliant with state tax requirements.

Business Income Tax Laws by State

Most states impose a corporate income tax, and several tax the income of all business entities. However, in most states, if you operate your business as a sole proprietorship or via a pass-through entity, you must report your business income on your state tax return, unless you are one of the lucky few that lives in a state without a personal income tax

It is important to understand the specific tax requirements that you need to follow in order to stay on the good side of the department of revenue for the states in which you do business.

As a small business owner, your decisions often have tax implications - whether or not you realize it. Some tax-related choices have a more general effect on your business income, namely:

  • Tax Year. Determines the time period for which your taxable income will be computed.
  • Accounting Method. Whether a sole proprieter, partner, or incorporated, you must report your accounting method to the IRS. There are two basic methods available to most small businesses: Cash and Accrual.

For a detailed summary about business income tax requirements, we have the following article: Understanding Small Business Taxes

If you are looking for business income tax laws specific to your state or jurisdiction, please visit the respective secretary of state.

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Category : State Taxes
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