Where is state income tax payable for Sole Proprietorship?

1	If a client lives in NH (where there is no state income tax) but their business is located in Mass and they are organized as a sole proprietorship, do they owe any state income tax to MA? income-tax state-tax asked 15 Jul '11, 23:22 Carol 2 111●4 accept rate: 0%

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0	If a business is conducted in a state or if there is a substantial physical presence in a state, there is income tax nexus that requires that it file a state tax return. link answered 16 Jul '11, 14:31 Bill-EA 3.8k●2●4●17 accept rate: 3%

0	If your sole proprietorship has significant presence in Massachusetts, you will need to file a personal state income tax return in Massachusetts reflecting your earnings in Massachusetts. link answered 18 Jul '11, 13:23 Jen 112●9 accept rate: 0%

Definitely seek out a NH tax preparer experienced in business taxes. NH has the reputation of not having an income tax, but they tax business profits, interest and dividends and even have something called a Business Enterprise Tax. These may not apply to the business because it is located in MA, but you need to be sure.

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answered 18 Jul '11, 21:02

Susan K
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