Foreign companies establishing a presence in the United States are often confused and broad-sided by the myriad of state and local tax implications that they may become subject to due to their activities within the US, even when there are little to no federal tax obligations. The US states have little restriction when asserting their taxing powers - such as what they consider to be engaging in a trade or business. Further, states are not bound by treaty restrictions or uniform tax laws. These issues make it difficult for a foreign company to comply with state taxing authorities.

SimekScott’s state and local tax (SALT) Inbound state tax consulting services provides our inbound clients a comprehensive approach to understanding the multitude of state and local taxing authorities, their broad reach subjecting a foreign company to their taxes and a company’s state tax burdens based on their activities within the United States.

We work with our inbound clients through a holistic approach to provide guidance and determine solutions to their state and local tax burdens through:

  • Business Review: Working with the inbound client to fully understand their business, US operations and objectives.

  • State Tax Nexus Determination: Analyzing our inbound clients' business activities to determine a state's power to subject the inbound business to income, franchise, gross receipts, sales and use and other state taxes.

  • State Tax Revenue Sourcing and Apportionment Review: Determine and provide solutions to the proper sourcing and apportionment of the inbound's sales.

  • State Tax Filing Method: Analyze the inbound business's structure and operations in order to determine the proper state filing methodologies.

  • State Tax Compliance: Provide solutions to state registration and compliance requirements.

  • State Tax Planning: Determine the best state tax strategy for inbounds entering the US market (i.e. permanent establishment, entity formation, etc).