Multi-State & DC Tax Planning in Manassas, VA
If you do business across Virginia, DC, and Maryland—or have customers, employees, or contractors in multiple states—your tax situation is more complex than a single-state business. And complexity leads to surprise filings, unexpected bills, and overpaying.
At Hollins & Hur, we help established small businesses across the DC metro area navigate multi-state tax obligations, avoid double taxation, and stay compliant across jurisdictions—without leaving money on the table.
Book a Tax Fit CallWhat Multi-State Tax Planning Actually Solves
Multi-state tax planning isn't just about filing returns in more places. It's about understanding where you have obligations—and where you don't—so you're not caught off guard by:
- Unexpected notices from states you didn't know you owed
- Double taxation from overlapping jurisdictions
- Penalties for missed filings you didn't know were required
- Overpaying because you're not claiming available credits
We help you map your obligations, optimize your position, and build a plan that keeps you compliant without overpaying.
Who This Is For
What's Included in Our Multi-State & DC Tax Planning Service
Common Multi-State Triggers That Create Surprise Taxes
Many business owners don't realize they've triggered filing obligations in other states until they get a notice. Here are the most common triggers we see:
Multi-State Planning Pairs With Quarterly Estimates and Year-End Strategy
Multi-state obligations don't exist in isolation. They affect your quarterly estimated tax payments and year-end planning decisions. We coordinate all three so you're not overpaying quarterly or missing year-end opportunities.
How Entity Structure Impacts Multi-State Complexity
Your business structure determines how multi-state income is allocated and which elections are available. Here's how it breaks down:
S-Corps
S-corps have specific multi-state considerations: pass-through entity tax (PTET) elections vary by state, owner compensation affects state allocations, and some states don't recognize S-corp status federally. We coordinate your reasonable salary planning with multi-state compliance.
LLCs
LLCs face different multi-state rules depending on how they're taxed. Disregarded LLCs flow through to personal returns, while partnership-taxed LLCs have their own allocation rules. DC's unincorporated business tax applies to LLCs differently than VA or MD. We help you navigate these differences.
LLC Tax PlanningOur Multi-State Tax Planning Process (3 Steps)
Step 1: Nexus Analysis
We map your business activities across all states—employees, customers, contractors, inventory—to determine where you have filing obligations and where you don't.
Step 2: Obligation Review
We review your current filings, identify gaps or missed obligations, and model the tax impact across jurisdictions. This includes PTET elections and credit opportunities.
Step 3: Strategy & Implementation
We develop a coordinated plan that minimizes total tax liability, avoids double taxation, and keeps you compliant. Then we help you execute it.
If Your Books Aren't Tax-Ready, We Fix That First
Accurate multi-state planning requires accurate books. If your financials are behind or messy, we'll clean them up before making recommendations. That means:
- Revenue properly categorized by state/jurisdiction
- Expenses allocated correctly for apportionment
- Payroll records accurate across all states
Once your books are clean, we can give you real multi-state recommendations—not guesses. Learn more about our tax return preparation process.
FAQs About Multi-State & DC Tax Planning
Do I have to file in every state where I have a customer?
Not necessarily. Filing requirements depend on whether you have 'nexus' in that state—which can be triggered by physical presence, employees, or economic thresholds (like exceeding a sales dollar amount). We analyze your business activities to determine where you actually have filing obligations.
How does Virginia tax businesses differently from DC or Maryland?
Each jurisdiction has different rules. Virginia uses a corporate income tax and offers a pass-through entity tax (PTET) election. DC has its own corporate and unincorporated business taxes with different thresholds. Maryland has both state and local income tax layers. We navigate all of this so you don't overpay or miss anything.
Can I get a credit for taxes paid to other states?
Usually, yes. Most states allow credits for taxes paid to other jurisdictions to prevent double taxation on the same income. However, the rules vary. We ensure you're claiming all available credits and applying them correctly.
What if I have remote employees in different states?
Remote employees can create nexus and withholding obligations in their home states. This means you may need to register, withhold state taxes, and file returns in those states. We help you understand the implications and stay compliant.
How do I know if I have nexus in a state?
Nexus can be triggered by physical presence (office, inventory, employees), significant sales (economic nexus thresholds), or other activities like trade show attendance. We analyze your business to determine where you have obligations—and where you don't.
What's the VA pass-through entity tax (PTET) and should I elect it?
Virginia's PTET allows S-corps and partnerships to pay state tax at the entity level, creating a federal deduction that bypasses the SALT cap. Whether you should elect depends on your specific situation—we model it as part of your multi-state planning.
What happens if I haven't been filing in a state where I have nexus?
You may have back-filing obligations and potential penalties. Many states offer voluntary disclosure agreements (VDAs) that can reduce penalties. We help you get compliant without triggering unnecessary exposure.
Related Tax Planning Services
Ready to Simplify Your Multi-State Taxes?
Stop guessing about which states you owe. Book a tax fit call and we'll map your obligations, identify opportunities, and build a plan that keeps you compliant without overpaying.
Book a Tax Fit Call