Our State and Local Tax Services
As a business owner, you have to deal with taxes on the state and local levels as well as the federal level. In addition to filing returns with the Internal Revenue Service (IRS), you also have to file state, county, and municipal returns for a wide range of taxes including sales and use tax, withholding and other payroll taxes, franchise and corporate income tax, property tax, and more.
Staying on top of multiple layers of requirements from different tax agencies can be time-consuming and confusing. However, meeting state and local tax requirements is critical for business owners. If you don’t fulfill your obligations, you risk incurring penalties and potentially compromising the integrity of your business.
Compliance requires detailed knowledge of the tax code in your area, and if you do business in multiple locations or remotely, you have even more rules and regulations to interpret. To help you stay compliant, DHJJ offers a full range of state and local tax services. Our accounting professionals can help your business navigate the taxes in your local area confidently and easily.
With our tax professionals in your corner, you can focus on your business while we take care of the tax obligations. Take a look at our state and local tax services.
Services Include
Mitigate business risk and strategically plan for tax liabilities with state and local tax services from DHJJ. Discover more about our State and Local Tax services, including:
If you have not been filing certain state or local tax returns, you may qualify to make a voluntary disclosure. These programs allow you to catch up on your filing requirements, with a minimum of penalties or other consequences. However, you must apply, and the rules vary from state to state. Many states let you start the process anonymously. We can help you figure out what to expect through our simulated voluntary disclosure agreements.
Local tax returns address business taxes on the county and municipal levels. The requirements vary based on your location, the structure of your business, the type of real estate you own, and the products or services you sell. Your business may need to file local sales tax returns, local corporate income tax returns, and/or personal property disclosures. We can also help you manage and/or appeal commercial property tax assessments. We figure out the local demands in your area so that you can rest assured that your business is compliant.
If your corporation does business in multiple states, we can help you calculate apportionment to determine your taxable corporate income in each state. This process breaks down your sales in different states to assess the portion of your business that happens in that state and thus the amount of income subject to state taxes. We also take into account the relative payroll, property, and sales tax burden in each state. Our specialists ensure that they use the apportionment method that optimizes your tax situation the most effectively.
Nexus rules vary from state to state, and if you have nexus, you must ensure that you collect and remit sales tax from that state. Over the last decade nexus rules have changed drastically, and in the wake of South Dakota v. Wayfair, it can be hard to know where you have nexus. We can help you identify the states where you have nexus. We can also help you stay on top of how changes in operations affect your nexus status for different states.
If you have nexus in a state, you will need to register for a sales tax license. You may also need to register for other state and local tax requirements. Our team will assess your registration requirements. Then, we will register your business for the applicable taxes as well as any state or local permits or business licenses. We will also handle renewals and ensure that you don’t let any registrations lapse.
Depending on the structure of your business and the state you’re located in, you may need to file state corporate or franchise income tax returns. If you have employees, you will also need to file state withholding, state unemployment, and any other special returns required for employees in your state. Businesses that sell products also need to deal with state sales and use tax. In many cases, you will have to juggle the rules in multiple states.
Many states require businesses to file annual personal property tax returns for tangible assets like equipment, furniture, inventory, and leased items. These rules, and what counts as taxable, vary by state and even by county.
We help you determine which assets are subject to personal property tax, prepare and file the necessary returns, and ensure you’re not overpaying or missing key deadlines. If you operate in multiple states, we’ll sort out your obligations and keep your filings accurate and compliant.
Not Sure Where You Stand? Start with a SALT Assessment
If you’re wondering whether your business has overlooked any state or local tax requirements, or simply want peace of mind, our State and Local Tax Assessment is a smart first step.
In just one hour, we’ll walk through:
- Where you’re doing business (including remote or out-of-state work)
- Where your sales are concentrated
- Where you have physical property, employees, or contractors
We’ll help you identify potential tax filing obligations, such as income, franchise, gross receipts, or sales tax, and evaluate whether further analysis or risk mitigation is needed.
Ready to get clarity on your SALT exposure?
We’re Here to Help You Navigate The Tax World
Taxes are complicated, and not staying in compliance can threaten the integrity of your business. Failure to pay state and local taxes can open you up to interest, penalties, and worst case scenario, business closures. To stay on top of your obligations, you need an accountant who can help you identify the requirements, register with state and local revenue agencies, and file your returns.
You also need to budget for state and local tax payments. Even taxes that are collected from consumers or employees and remitted to the revenue agencies can be hard to pay if you’re not managing your finances correctly. The right accountant can help you stay on top of everything.
Individuals also must contend with a maze of state and local tax requirements. If you itemize your deductions, the state and local tax (SALT) deduction can add up to $10,000 to your deductions. Our team can help you optimize that deduction and ensure that you’re embracing the best tax strategy for your personal bottom line.
At DHJJ, we offer tax, audit & assurance, and accounting services. Whether you’re dealing with state and local taxes on the business or personal level, we can help you navigate the requirements and stay on top of your obligations. We can also help you with tax planning to ensure that you’re paying as little tax as possible. To learn more about our services, contact us today. We’ll talk about your needs, and then, we’ll make a plan to ensure that your finances are working for you.
Industries we specialize in include:
Areas We Service
Make your business stronger and your life simpler. Listed below are the areas we service! Please reach out if you do not see your location listed!
- Elk Grove Village, IL
- Joliet, IL
- Rockford, IL
- Elgin, IL
- Springfield, IL
- Peoria, IL
- Champaign, IL
- Waukegan, IL
Recent insights
Tax-Smart Retirement Planning for Business Owners
Key points Business owners have retirement plan options beyond standard IRAs. Solo 401(k)s, SEP IRAs, SIMPLE IRAs, and…
Developing a Long-Term Financial Vision in Times of Uncertainty
Key Points You can’t eliminate economic uncertainty but can prepare by setting clear goals and building flexible financial…
Operating Budget vs. Capital Budget: What’s the Difference and Why It Matters
Key Points: Operating budgets manage short-term expenses like payroll and rent, guiding day-to-day business decisions and supporting cash…
