TX has no income tax but has a franchise/margin tax on businesses with revenue > $2.47M. Currently below threshold โ no filing obligation yet, but still required to file a No Tax Due report.
Threshold$2,470,000
โ P.L. 86-272 does not protect service companies
๐SOS RegistrationQualified
Home state โ domestic filing.
โน๏ธHome state. Watch out for city vs county rates.
California
CA
Physical Presence
๐งพSales TaxAction Required
Physical Presenceโ Triggered
๐ง
Equipment Rental
โ๏ธ
Services Performed
Economic Nexusโ Below Threshold
Revenue
$11,594
/ $500,000
Base Rate7.25%
๐ผCorporate Income TaxTriggered
CA has aggressive economic nexus standards for income tax. P.L. 86-272 does NOT protect service companies.
โ P.L. 86-272 does not protect service companies
๐SOS RegistrationRequired
Foreign qualification likely required due to physical service operations.
โน๏ธDistrict taxes apply heavily here. Combined rates can exceed 10% in some jurisdictions.
New York
NY
Physical Presence
๐งพSales TaxAction Required
Physical Presenceโ Triggered
๐ง
Equipment Rental
โ๏ธ
Services Performed
Economic Nexusโ Below Threshold
Revenue
$13,016
/ $500,000
Transactions
2
/ 100
Revenue AND transaction count
Estimated Uncollected Liability
$1,423.36
Base Rate4.00%
๐ผCorporate Franchise TaxWatching
NY has an economic nexus threshold of $1M in receipts for income tax. P.L. 86-272 does NOT protect services.
Threshold$1,000,000
โ P.L. 86-272 does not protect service companies
๐SOS RegistrationNot Required
Not yet required โ no fixed place of business.
โน๏ธApproaching nexus due to Q4 sales spike. Requires BOTH $500K sales AND 100 transactions.
Oregon
OR
No Sales Tax
๐งพSales TaxN/A
โThis state does not impose a general sales tax. No collection obligation.
๐ผCorporate Activity Tax (CAT)Watching
OR CAT applies to businesses with $1M+ in commercial activity sourced to OR. Rate is 0.57% on receipts over $1M after $35K subtraction.
Threshold$1,000,000
โ P.L. 86-272 does not protect service companies
๐SOS RegistrationNot Required
May be required if maintaining regular service operations in state.
โน๏ธNo sales tax, but Oregon has a Corporate Activity Tax (CAT) on commercial activity over $1M.
Florida
FL
Physical Presence
๐งพSales TaxAction Required
Physical Presenceโ Triggered
๐ง
Equipment Rental
Economic Nexusโ Below Threshold
Revenue
$19,628
/ $100,000
Estimated Uncollected Liability
$1,514.87
Base Rate6.00%
๐ผCorporate Income TaxWatching
FL corporate income tax rate is 5.5% with a $50K exemption. Economic nexus applies.
โ P.L. 86-272 does not protect service companies
๐SOS RegistrationNot Required
Required if establishing regular business operations in FL.
โน๏ธRental of equipment is taxable. Services are generally exempt but repair services may be taxable.
New Hampshire
NH
No Sales Tax
๐งพSales TaxN/A
โThis state does not impose a general sales tax. No collection obligation.
๐ผBusiness Profits Tax (BPT)Watching
NH BPT rate is 7.5%. Also has a Business Enterprise Tax (BET) at 0.55% on enterprise value tax base. Nexus triggered by physical presence or $50K+ gross receipts.
Threshold$50,000
โ P.L. 86-272 does not protect service companies
๐SOS RegistrationNot Required
Required if transacting business in NH.
โน๏ธNo sales tax. NH has a Business Profits Tax (BPT) and Business Enterprise Tax (BET).