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Does my s corp do business in multiple states if we sell online only & ship all over the US or is it only in the state where we live because we work from home?

We are an s corp registered in Florida, but we are now in Colorado. All of our sales are online only and we ship all over the US.
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Accepted Solutions
PatriciaV
Employee Tax Expert

Does my s corp do business in multiple states if we sell online only & ship all over the US or is it only in the state where we live because we work from home?

The act of shipping sold merchandise to another state does not normally trigger income sourced in that state. If you manufacture/stock your merchandise in your home state, you would not file a nonresident state tax return in another state just because you sold to residents of that state.

 

This does not address sales tax issues, which you will need to research on your own.

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1 Reply
PatriciaV
Employee Tax Expert

Does my s corp do business in multiple states if we sell online only & ship all over the US or is it only in the state where we live because we work from home?

The act of shipping sold merchandise to another state does not normally trigger income sourced in that state. If you manufacture/stock your merchandise in your home state, you would not file a nonresident state tax return in another state just because you sold to residents of that state.

 

This does not address sales tax issues, which you will need to research on your own.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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