map-294521_1280The most-recent edition of the NATP TaxPro Journal had an article that caught my attention: “Taking on a New Business Client: 18 Things You Need to Know.”

It was a really good article (the only item I disagreed with was the author saying to ask for a copy of the business’s “fire inspection certificate” — I’m not sure why that’s relevant for a tax preparer to have).

And I want to add a #19, or better yet, replace the “fire inspection certificate” item with: ask if the client is operating in other states.

Some small business owners — especially those who are inclined to be Joe the Window Washers — operate their businesses blissfully unaware of the fact that if they cross state borders to provide a service, they probably have various filing requirements in that state.

Examples of those “various filing requirements” might include:

  • Registering to do business in that state
  • Maybe collecting sales tax
  • Filing an income tax return in that state

It’s far better for the preparer to know about a business’s out-of-state activities up-front.

In fact, this is one of the reasons why I’m changing the way in which I work with small business clients. I’ll cover that in an upcoming blog post.

Image courtesy of user Nemo on Pixabay.com

“This blog post, along with comments that may follow, should not be considered tax advice. Before you make final tax or financial decisions, please secure a professional tax advisor to give you advice about your unique situation. To secure Jason as your accountant, please click on the ‘Services’ link at the top of the page.”