P has a prime contract with CDC in Atlanta, and is an Alabama domestic corporation. S is a subcontractor to P, but is a California domestic corporation.
P has a small payroll in Alabama, doing administrative work only. S has a payroll in Connecticut, performing the essential mission of the contract. S submits billings to P. P adds 15% to the S bills plus some other costs and submits to CDC.
For purposes of this contract, P has no employees anywhere but Alabama and S has no employees anywhere but Connecticut.
For which state(s) will P need to file a corporate return?
a. Domestic return for Alabama.
b. Foreign return for Connecticut.
c. Foreign return for Georgia.
For which state(s) will S need to file a corporate return?
a. Domestic return for California.
b. Foreign return for Alabama.
c. Foreign return for Connecticut.
d. Foreign return for Georgia.
I believe each company will file multiple returns, but not sure which. I am relying on the three-factor formula in use for state allocations.
P has a small payroll in Alabama, doing administrative work only. S has a payroll in Connecticut, performing the essential mission of the contract. S submits billings to P. P adds 15% to the S bills plus some other costs and submits to CDC.
For purposes of this contract, P has no employees anywhere but Alabama and S has no employees anywhere but Connecticut.
For which state(s) will P need to file a corporate return?
a. Domestic return for Alabama.
b. Foreign return for Connecticut.
c. Foreign return for Georgia.
For which state(s) will S need to file a corporate return?
a. Domestic return for California.
b. Foreign return for Alabama.
c. Foreign return for Connecticut.
d. Foreign return for Georgia.
I believe each company will file multiple returns, but not sure which. I am relying on the three-factor formula in use for state allocations.