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  1. #1

    Colo Legal/Tax Implications

    Has anyone dealt with the issue described in the following article?

    http://www.infoworld.com/articles/op...8opfoster.html

    It seems to say that if you are a company with only a NY presence and you colocate some servers in NJ, you are then considered to have a 'business presence' in NJ and need to collect sales tax there and maybe even pay corporate income tax!

  2. #2
    Join Date
    Oct 2004
    Location
    Nevada
    Posts
    887
    If you are a corporation, you are supposed to file as a foriegn corporation in every state that you operate, or collect income.
    Unfortunately that also means that you are supposed to file corporate income tax in those states as well.
    Additionally, some cities and counties require that you have business licenses to operate there also.

    As stated in the article, some states are now going after sales tax. California is among them.

  3. #3
    Join Date
    Nov 2004
    Posts
    1,145
    Talk to a CPA. Having equipment in one state might not qualify as having a "presence" (ie, office, billing department, etc). A CPA or business lawyer is the only one qualified to answer these questions.

  4. #4
    Join Date
    Oct 2004
    Location
    Nevada
    Posts
    887
    Also talk to your corporate attorney / corporate agent. I have found it helpful to have them also do a conference call with the CPA ( I have heard more then one 'oh yeah, thats right' during a conf call between them )
    And call the Secretary of State and / or Franchise Tax Board for that state.

  5. #5
    Join Date
    Nov 2004
    Location
    Atlanta, GA
    Posts
    464
    I am working with it now, we have servers in california and I think that they are all going to get moved on NV over this issue.

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