Multi-state – Doing Business in Different Places Creates Financial Hurdles

www.news.yahoo.com by Joyce Rosenberg – March 24, 2016

“As small companies expand their business into more towns, cities and states, that growth often brings higher expenses from taxes and other government obligations.

Many companies find they have new fees to pay or must comply with requirements like mandatory paid sick leave. They may have to collect sales tax on the goods or services they sell — taxes that often differ from place to place. There’s also the expense of hiring staffers, accountants, lawyers and consultants to handle the administrative chores, including keeping track of frequently changing laws.

Before companies start doing business in new locations, they need to understand the legal and financial requirements, says John W. Sullivan III, a tax attorney based in New York. For example, working in a new state may require a company to register with the secretary of state; not doing so can mean thousands of dollars in penalties. Or, sending an employee to do work in a town just over the state line could require a business to start collecting sales tax or pay income tax. Often, business owners don’t know what their new obligations are, Sullivan says.”

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http://news.yahoo.com/doing-business-different-places-creates-141928456.html;_ylt=AwrXnCAnNvRWNHQA7CfQtDMD;_ylu=X3oDMTBya2cwZmh2BGNvbG8DZ3ExBHBvcwM1BHZ0aWQDBHNlYwNzcg–