A: In determining whether a corporation is "doing business" in another state, you would have to look at the rules governing each state. The commerce clause of the U.S. Constitution limits each state's ability to tax activities outside of its boundaries. In the case of New Jersey, consideration is given to the following factors: the nature and extent of the activities of the corporation in New Jersey, the location of its offices, and the continuity, frequency and regularity of the activities of the corporation in that state. The employment in New Jersey of agents, officers, and employees also is a factor, as is the location of the actual seat of management or control.
According to the information you provided concerning your consulting firm, the short client meetings in New Jersey would not constitute "doing business" in the state and, therefore, you would not owe any tax. In regards to other states, you would need to contact each one individually.
Lawrence N. Frankel, CPA
Frankel and Topche, P.C.
West Orange, N.J.Editor's note: While the information in Tax Adviser represents the opinion of an expert, it is not legally binding. By Theresa Forsman in New York
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