Discussion:S-Corp Doing Out of State Business
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Discussion Forum Index --> Tax Questions --> S-Corp Doing Out of State Business
| 1 July 2008 | |
| I have a Michigan registered S- Corporation that does design work for auto manufacturing company's. They are doing a project for Toyota who is lcoated in Indiana. This S-Corporation will receive income from Indiana. Is there any taxes owed to the state of Indiana for doing business there? The S-Corp is located in Michigan. | |
| 1 July 2008 | |
| Tax Lady, could you please complete your profile? I think we have asked before.
Where will the work be performed? If all of the work is performed in Michigan, no Indiana tax liability will arise from this activity. | |
| 1 July 2008 | |
| I know that if someone from out of state comes into Michigan to work for 10 days during the year, they are subject to MI income tax. This is not unusual for someone who visits MI companies once a month. It doesn't matter where the company is located, it is physical presence that makes a difference.
All the states have their own definition of nexus. I suggest you call INDOR. | |
| 2 July 2008 | |
| And if Tax Lady's client, or other employees of the S corporation, worked in Indiana, both the employee and the corporation (and by extension, the stockholders) would be taxable in Indiana. | |
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