State and Local Tax Services
As businesses expand into new states, open additional locations, hire remote employees, acquire other companies, or sell products across state lines, state and local tax obligations become increasingly complex. Different jurisdictions apply different rules for income tax, sales and use tax, franchise tax, and nexus, creating compliance challenges that can impact growth and profitability.
LBMC’s State and Local Tax (SALT) professionals work alongside our Federal Business Tax specialists to help businesses evaluate multi-state tax obligations, manage compliance, respond to audits, and identify planning opportunities that support informed business decisions. From business expansion to audit defense and ongoing compliance, our team provides practical guidance tailored to your organization’s unique circumstances.
Common State Tax Challenges
State and local tax issues often emerge as businesses grow, expand, or change how they operate. Different states apply different tax rules, creating new filing obligations, compliance requirements, and planning opportunities that can be difficult to identify without specialized guidance. Organizations often involve LBMC’s State and Local Tax professionals when complexity increases or risk becomes more difficult to manage internally.
Common situations include:
- Expanding into new states and understanding new tax filing obligations.
- Hiring remote employees or opening new offices, warehouses, or distribution facilities that may create nexus.
- Selling products or services in additional states and evaluating sales and use tax requirements.
- Responding to state tax audits, notices, or inquiries from taxing authorities.
- Acquiring, merging, or restructuring a business and evaluating the state tax implications of the transaction.
- Reviewing historical tax exposure or identifying opportunities for refunds, voluntary disclosure agreements (VDAs), or process improvements.
Stay Current on State Tax Changes
Managing state tax obligations is ongoing. Regulations shift, enforcement increases, and new risks emerge as your business grows.
Subscribe to our SALT Insights for practical insights on nexus, audits, and state tax strategy — delivered straight to your inbox.
LBMC’s State and Local Tax Consulting Services
LBMC’s State and Local Tax consulting services are designed to help businesses proactively manage multi-state tax obligations while responding effectively to changing regulations, audits, and business growth. Our team provides practical guidance that helps organizations identify risk, improve compliance, and make informed decisions at every stage.
Diagnostic Services
Identify risk, exposure, and planning opportunities.
Understanding your current state tax position is the foundation of an effective SALT strategy. We evaluate where obligations exist, assess potential exposure, and identify opportunities to strengthen compliance and improve your overall tax position. Our team also collaborates with LBMC’s International Tax professionals when cross-border business activities create additional state tax considerations.
This typically includes:
- Nexus studies to determine where you have filing obligations
- Taxability reviews across products, services, and jurisdictions
- Exposure assessments to quantify potential liabilities
- Identification of overpayments or refund opportunities
- Evaluation of current processes and compliance gaps
This gives you a clear understanding of your risk profile and where to take action first.
Preventative Services
Build a stronger long-term state tax strategy.
As your business grows, state tax obligations evolve. We help organizations develop practical processes and planning strategies that support compliance while reducing future tax risk.
We help you:
- Establish consistent multi-state filing practices
- Improve documentation to support tax positions
- Align tax strategy with operations and expansion plans
- Monitor nexus changes as your footprint evolves
- Reduce audit risk through proactive planning
The goal is to create a sustainable approach that keeps your business compliant without adding unnecessary complexity.
Emergency Services
Respond with confidence when issues arise.
State tax audits, notices, and disputes require timely action. Our team helps businesses evaluate their options, respond efficiently, and work toward practical resolutions while minimizing disruption.
Support may include:
- Audit defense and response management
- Assistance with state notices and inquiries
- Negotiation and resolution of tax disputes
- Voluntary disclosure agreements (VDAs)
- Remediation of prior compliance gaps
Our focus is to protect your position, minimize potential liabilities, and resolve issues as efficiently as possible.
Tax Solutions Built Around Your Goals
Whether you’re navigating multi-state complexity, preparing for an audit, or planning your next phase of growth, LBMC’s state and local tax advisors can help you clarify exposure, identify opportunities, and move forward with confidence. Start with a conversation grounded in your business reality.
Why Choose LBMC as Your State and Local Tax Firm?
- Dedicated State & Local Tax specialists with experience helping businesses manage complex multi-state tax issues across a wide range of industries.
- Practical, business-focused guidance that balances technical tax expertise with recommendations aligned to your organization’s operational and financial goals.
- Integrated access to LBMC’s tax and advisory professionals, including Federal Business Tax, International Tax, Transaction Advisory, and Credits & Incentives specialists when additional expertise is needed.
- Proactive planning and ongoing support that helps businesses identify opportunities, reduce risk, and respond confidently to changing state tax laws.
- A trusted, long-term advisor committed to helping organizations navigate state tax complexity as they grow, expand, and evolve.
Industries We Support
Different industries face different state tax challenges. LBMC’s State and Local Tax professionals provide industry-informed guidance that reflects the unique tax considerations affecting each organization’s operations, transactions, and growth objectives.
Explore our industry expertise:
Local Expertise, Wherever You Are
With offices in Chattanooga, Memphis, Louisville, Nashville, Knoxville, Philadelphia, and Charlotte, plus remote offices, LBMC partners with businesses across the region and beyond.
State and Local Tax Resources
FAQs about State and Local Tax Services
What is nexus, and why does it matter?
Nexus is the connection between a business and a state that creates a tax filing obligation. Activities such as opening a location, hiring employees, storing inventory, or exceeding economic nexus thresholds may require a business to register, collect sales tax, or file state tax returns.
When should a business involve a State and Local Tax advisor?
Businesses often benefit from SALT guidance before expanding into new states, acquiring another business, opening new facilities, hiring remote employees, or responding to a state tax audit. Early planning can help identify filing obligations, reduce risk, and avoid unexpected tax liabilities.
Can LBMC help with state tax audits?
Yes. LBMC assists businesses with state tax audits, notices, and other inquiries from taxing authorities. Our team helps clients understand the issues involved, prepare documentation, respond to requests, and work toward practical resolutions.
What types of state taxes does LBMC help businesses manage?
LBMC advises businesses on a wide range of state and local tax matters, including income tax, franchise tax, sales and use tax, gross receipts tax, property tax, and other state-specific tax obligations.
How can businesses identify potential state tax refund opportunities?
Businesses may qualify for refunds because of overpayments, changes in tax law, amended filings, or previously overlooked tax positions. LBMC evaluates historical filings and tax positions to identify potential refund opportunities and other planning strategies.
How do changing state tax laws affect my business?
State tax laws change frequently, and businesses operating in multiple jurisdictions may need to adjust their compliance processes and tax strategies as new legislation, court decisions, and administrative guidance are issued. LBMC helps clients stay informed and evaluate how these changes may affect their operations.
LBMC's Team of Tax CPAs and Advisors
LBMC State and Local Tax
Talk to an Advisor
Whether you’re navigating multi-state complexity, preparing for an audit, or planning your next phase of growth, LBMC’s state and local tax advisors can help you clarify exposure, identify opportunities, and move forward with confidence.