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Decoding Combination: What Is a Unitary Business For example, in Rhode Island, an affiliated group of C corporations may elect to be treated as a combined group regardless of whether they are engaged in a unitary business
What Is the Unit Rule in Taxation and Valuation? - LegalClarity A state can only subject a corporation’s income to apportionment if the corporation and its related entities constitute a single unitary business The determination that a business is unitary is the legal prerequisite for requiring combined reporting
The Unitary Business Principle and Combined Returns Note: An affiliated group commonly controlled group may be engaged in one or more unitary businesses Therefore, an affiliated group commonly controlled group may contain more than one combined group and file more than one New Jersey combined return
DETERMINING THE INCOME OF MULTISTATE AND MULTINATIONAL . . . The unitary method applies to single corporations doing business both within and outside of California It also applies to groups of affiliated corporations that, in effect, operate as one integrated business
Keeping It in the Family: Mitigate the Intercompany Tax Risk Just as some states require that separate entities file combined income tax returns, to better reflect a single unitary enterprise, some states provide sales tax exemptions for transfers between affiliated entities owned by the same parent company
Texas Unitary Group Rules Explained - Texas Tax Experts . . . If your business operates with multiple connected entities, Texas may treat you as a unitary group for Franchise Tax purposes Ignoring these rules can create exposure, but with the right structure and filings, you can avoid double taxation and maintain compliance
Texas Tax Code Section 171. 1014 – Combined Reporting . . . Taxable entities that are part of an affiliated group engaged in a unitary business shall file a combined group report in lieu of individual reports based on the combined group’s business