State Corporation Income and Franchise Taxes

Taxes
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Forty-five states impose a direct tax on corporations, measured at least partially by net income. Michigan, Nevada, South Dakota, Washington.

A state is empowered to tax any net corporate income attributable to in-state activity no matter where the corporation is headquartered. Corporations must apportion their income among the states where they have a sufficient connection (the legal term is nexus) and pay tax in each of those states. Several states tax unincorporated businesses separately.

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