ARTICLE | February 04, 2025

Growing Your Business with Confidence

Expanding into new states is an exciting milestone—but it also comes with a lot of state and local tax (SALT) rules to manage. With varying requirements for income, sales, payroll, and excise taxes across different regions, staying compliant can feel like a moving target. That’s where we come in. Our SALT experts are here to simplify the process, keeping you compliant while uncovering ways to optimize your tax position. Let us handle the complexities so you can focus on growing your business.

Understanding Nexus: The Key to Your State Tax Responsibilities

Nexus is the key to figuring out which states can impose tax obligations on your business. But it’s not a one-size-fits-all—it’s influenced by changing laws, regulatory updates, and other factors. Nexus standards vary greatly by state and tax type, creating challenges for businesses with:

• Mobile assets, employees, or reps
• Multi-state sales or service offerings
• Expanding digital or e-commerce presence
• Selling and shipping tangible products across state lines
• Rapid growth or operational shifts
• Mergers or restructuring

Without a clear understanding of nexus, businesses risk noncompliance, which can lead to penalties, interest, and even personal liability for business owners. We help you pinpoint where your business has nexus and ensure you’re meeting your state tax obligations without hassle.

Comprehensive SALT & Nexus Assessment

Reducing risk and uncovering opportunities starts with understanding your potential tax exposure. Our SALT specialists perform a detailed nexus study, analyzing your business activities against state tax laws. We cover:

• Unrecognized tax liabilities and compliance gaps
• Opportunities for refunds or correcting overpayments
• Readiness for IPOs, mergers, or acquisitions
• Financial statement accuracy

Our study provides a complete risk assessment for each applicable tax type and offers clear recommendations to tackle liabilities and identify tax-saving opportunities.

Sales & Use Tax Services

Sales and use tax can get tricky, especially when dealing with multi-state requirements. We’re here to keep your business compliant, avoiding overpayment and underreporting. We’ll handle the tax complexities so you can focus on running your business smoothly.

Our sales and use tax services include:

• Multi-state sales & use tax registrations and filings
• Consultation for business sales, acquisitions, or state expansions
• Audit and state inquiry support
• Voluntary disclosure agreement services
• Nexus determination
• Exemption certificate management
• Business registrations
• Taxability research
• Software solutions
• Audit defense

Multi-State Payroll & HR Services

As your business expands, finding talented employees is a must. Whether you’re hiring for a new office location or a remote workforce, our experts are here to help ensure hiring top talent isn’t an administrative headache. Services we offer include:

• HR consulting for multi-state operations (outsourced HR, policy development, and employee compliance)
• Assistance with employee hiring in new states, including payroll tax setup and employer withholding requirements
• Employee benefits review, design and launch best plan for your people.
• Review and update employee handbooks for state specific compliance
• Multi-state payroll tax registration assistance

Unclaimed Property Services

Navigating unclaimed property requirements can be challenging, especially with frequent law changes and increased state enforcement. Unclaimed property includes financial assets that have been forgotten or abandoned, like unused bank accounts, uncashed checks, or unclaimed insurance benefits. Businesses must report and remit this property to state authorities after a certain period of inactivity to stay compliant and avoid penalties. We’re here to help you stay on top of it all, from developing policies to recovering assets.

Unclaimed property services include:

• Identifying potential liabilities
• Gathering records and quantifying exposures for voluntary disclosure programs
• Engaging with state administrators to secure settlements
• Audit defense and voluntary disclosure agreement services
• Tailored training sessions and materials for your teams
• Ongoing compliance support, including monitoring legal changes
• Policy and procedure development to centralize compliance
• Streamlined processes to identify, report, and manage unclaimed property
• Asset recovery services

Strategic Solutions to Minimize Tax Liability

When noncompliance for income, sales, use, or excise tax is identified, we help you negotiate voluntary disclosure agreements (VDAs) with state agencies to reduce financial exposure. VDAs provide:

• Limited lookback periods to reduce past-due liabilities
• Apply for penalty waivers and potential interest reductions
• Clear guidelines for future tax compliance
• Improved accuracy in financial reporting
• Reduced risk of multi-state information sharing

By proactively addressing your tax obligations, you can expand into new markets without fear of unexpected tax issues.

Other Services

Our SALT team offers a wide range of additional services, including:

• Washington B&O consulting and compliance services
• State income tax preparation, filing, and planning
• State and local business registration and renewal tracking
• Personal property tax return consulting
• Multifaceted state consulting on expansion into another state or temporary in-state projects to ensure management has the best information possible on decision making and bid proposals.

Your Growth, Our Expertise

At Larson Gross, we’re more than just tax advisors—we’re your partner in growth. Let us guide you through the complexities of state and local taxation so you can focus on scaling your business. Let’s simplify SALT together—contact us today and see how we can support your multi-state expansion.