State and local taxes: know your own backyard

Federal is only half the story. Depending on where you operate, you may owe state income tax, sales tax, city or county taxes, and maybe a franchise fee or business-license fee. These vary wildly — what's true in one state isn't true in the next — so the smart move is to find out exactly what applies to you, once, and get it on the calendar.

Do this

1. Check whether your state has an income tax (a few don't) and how it treats small business.
2. If you sell taxable goods or services, register for a sales-tax permit and file every period on time — even a $0 month.
3. Look up local, city, or county taxes and any business-license or franchise fees where you operate.
4. Confirm your full list with your state's Department of Revenue or a local tax pro, then calendar every due date.

Your state & local tax checklist

Federal rules are the same everywhere; these are not. Nail down:

• State income tax — does your state have one, and do you owe it? • Sales tax — do you need a permit, and how often do you file? • Local / city / county taxes — district add-ons where you operate • Business license / franchise fee — often annual, easy to forget

Your state's Department of Revenue website is the authoritative source, and a local tax pro can confirm the full list in one short conversation. If your state has its own Academy track, start there.

(General info, not tax advice — rules differ by location; verify locally.)