A state cannot levy a tax on a business unless the business was incorporated in the state.

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A state can levy a tax on a business if the business has a physical presence, such as employees or property, within the state, even if the business was not incorporated in the state. This is known as a "nexus" or connection to the state. Additionally, some states have adopted laws that allow them to tax out-of-state businesses that have a certain level of sales within the state.

A State Cannot Levy a Tax on a Business Unless