Tax Guru – Ker$tetter Letter

Q:

Sir:

 

I just had the opportunity to read your article on S and C Corporations, and I found it to be so interesting that I decided to ask I question, if i may.

 

Can you shed some light on the obligation of NON RESIDENT SHAREHOLDERS to pay state taxes in states where the corporation has physical offices? 

 

If there is such a requirement, where can I obtain a list of the states that have that requirement?

 

Your assistance will be appreciated, and thanks for writing articles that are really.

A:

As far as I know, this is required by every state that has its own income tax.

It’s not just having an actual office inside the state that triggers the particular state to levy taxes on non-resident shareholders.  It also applies where income is earned inside the state from services, product sales and other kinds of properties, such as rentals.

You can get to all of the individual state tax websites via:
www.sisterstates.com

Good luck.

Kerry Kerstetter