A business that operates in more than one state is required to pay state income tax only to the state in which it is incorporated.

Question

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A business that operates in more than one state is required to pay state income tax in every state where it has a taxable presence, which can include having employees, property or sales in that state. However, the state in which the business is incorporated may also require it to pay income tax, depending on that state's laws.

A Business That Operates in More Than One State Is