Apricus Business Consulting, LLC

State and Local Tax Consulting Specialists

Income, Franchise,
& Gross Receipts
Tax Consulting

Any business that sells products and services to customers in states outside their home state must understand the state tax implications for income, franchise and gross receipts taxes. These implications may have a direct tax effect on the company, and to its owners if the business is structured as a flow-through entity (i.e., S corporation, partnership, or limited liability company).  This can be a complex area of state taxation due to the number of considerations involved, including but not limited to the following:

  • Nexus – when is a filing requirement established?
  • Sourcing – how are revenues sourced to each state?
  • Apportionment – how does the state calculate its apportionment factor?
  • Safe Harbors, Deductions, Exemptions or Exclusions – do any apply to reduce, or in some cases, eliminate, a particular state tax?
  • Filing Methodology – type of tax return required: separate, combined or consolidated
  • Gross Receipts Tax – who is subject to the tax, and can it be passed on to customers?

Apricus Business Consulting works closely with corporations, S Corporations, partnerships, limited liability companies, other business entities and their owners to provide guidance on understanding and maintaining compliance for these taxes and to develop and implement strategies to minimize state income, franchise, and gross receipts taxes, from both a tax cost and an administrative burden perspective.  

Some of the key consulting services we offer in the state income, franchise, and gross receipts tax area include the following:

  • State Tax Return and Refund Review – We review previously filed state tax returns to identify planning opportunities and potential refund claims.

  • State Nexus Study – Review and analyze the business activities conducted in each state and determine whether nexus, and thus a state tax filing requirement, has been established. For income taxes, we analyze the applicability of the Federal safe harbor, Public Law 86-272. A more comprehensive state nexus study, which includes additional state taxes, is part of one of our key business reviews, a State Nexus Study, which is listed a separate service offering.

  • Apportionment Methodology Review – Determining the proper sales, payroll, and property to report for each state for the apportionment formula, including analyzing the right to apportion, reviewing the sourcing methodology for key revenue streams, analyzing the applicability of throwback\throw-out rules, and developing positions to streamline the company’s apportionment reporting.

  • Filing Methodology Reviews – Analyze the proper tax return filing methodology (separate, combined, or consolidated returns) for businesses with multiple entities.

  • Merger, Acquisition, and Restructuring Consulting – Performing state tax due diligence analysis on a company preparing for a sale transaction (pre-sale diligence) or of target company to identify areas of state tax non-compliance and quantify potential historical tax exposures for remediation and deal making purposes.