S Corp doing business in multiple states

[Auto]

Does an S Corp need to file multiple state S Corp returns if doing business out of the corp registered state? The S Corp doesn't have a physical presence in the other states but they are sending their employees to work at the out of state customer locations. The employees are all residents of the corp home state.

[ATSMAN]

Irrespective of the home state of the employees if the employees are physically present in a state and work on jobs in that state then a state tax return in generally required. Some states allow composite returns.

[Auto]

Thank you ATSMAN, So am I right in thinking the S Corp files a State return for each of the state worked, generating the Schedule K for each state, which then transfers to a multi state personal return?

[ATSMAN]

Thank you ATSMAN, So am I right in thinking the S Corp files a State return for each of the state worked, generating the Schedule K for each state, which then transfers to a multi state personal return?

You got it!

I had once prepared a tax return of a shareholder that received K1 for 8 or 9 states. Some of the K1 amounts were less than the tax prep charge!.

[Auto]

Unfortunately, that's what I thought. Thanks for confirming. I really appreciate it.

[Beersheba]

There might be a way out if the people working in the other states are there only temporarily. All the states are greedy for revenue, but many of them allow a non-resident worker to work for 60 days before having to enforce residency status. It is not only the Subchapter S filing, it is the creation of a payroll as well. If the workers are going to work in that state over the long haul, ATSMAN has told you correctly.

By giving a 60-day grace period, the states are not really being generous. They really don't want to process a bunch of non-resident tax returns with small amounts of income that create a bigger headache than the paltry amount of revenue involved. Many such non-resident tax returns would even be below filing requirements.

[Auto]

Just saw this now. But thank you!

[Lion]

You'll have to check each state. I think AL considers ANY activity in that state (might be a different southern state I'm thinking of that my largest biz client will NOT go to; holds all meetings in a neighboring state, for that very reason) creates nexus. A couple I've dealt with allow 15 days. Most you can find online or in the instructions for their state's S Corp instructions.

[Dude]

Irrespective of the home state of the employees if the employees are physically present in a state and work on jobs in that state then a state tax return in generally required. Some states allow composite returns.

and maybe local returns too especially in Northeast Ohio.

[Lion]

I found a lot of maps and lists online, but most pictured each state's sales & use tax requirements when selling goods into a state. Search and you'll probably find similar maps and lists for having employees work in a state.

[JON]

I have never heard of the 60 day rule. There are some differences in assigning income of the taxing authorities, bu most are on receipts %s. for the corp. Salary earned in the State is assigned to that State unless some local exception applies, most common one is reciprocity. Usually the corporation has to let the State know they are there, filing as foreign corporation doing business there.