Practical SALT Guidance: Last week I received an e-mail from a business associate. He's a member of a high-technology finance executive group which includes
CFOs, finance VPs, and corporate controllers, many whom work
for high-tech start-ups. Along with his e-mail, he forwarded a fellow
member's question on state franchise taxes. The question stated that this
executive's company was incorporated in Delaware, had operations in Alabama,
California, and Missouri, and a single employee working in Tennessee.
My colleague, being well aware of my state tax focus, forwarded the question to me, and I enthusiastically answered it.
I'm often asked about state franchise taxes; many companies don't understand exactly what a state franchise tax is and when a filing is required. As the executive who posed the question said, "In most small start-ups, you need a whole tax department to keep up with the reporting requirements if the letter of the law were followed in each in…
My colleague, being well aware of my state tax focus, forwarded the question to me, and I enthusiastically answered it.
I'm often asked about state franchise taxes; many companies don't understand exactly what a state franchise tax is and when a filing is required. As the executive who posed the question said, "In most small start-ups, you need a whole tax department to keep up with the reporting requirements if the letter of the law were followed in each in…