02 Jul Quick I Page – Under 3 Hours
Tom and Verna are going to combine their fishing businesses to become more profitable. Tom currently lives in Mississippi and Verna lives in Louisiana. They would prefer to set up the business as an S corporation, but only if it will not be subject to state taxation. Since Verna and Tom live within 20 miles of each other, they do not have a preference as to the state of incorporation. Does it make a tax difference which state they choose?
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