Case Study Category

Multi-State Tax Optimization Case Studies

See how clients operating across state lines have reduced their combined state tax burden through strategic domicile planning, nexus analysis, apportionment optimization, and state tax credit utilization.

24
Total Studies
$2.1M
Total State Tax Savings
$88K
Average Per Client

Featured Multi-State Case Studies

20 highlighted engagements demonstrating effective strategies for minimizing state tax obligations across jurisdictions.

State Relocation Domicile Change

Business Owner Relocates From California to Nevada, Saving $145K Annually in State Tax

A business owner earning $1.1M relocated their personal domicile from California (13.3% top rate) to Nevada (0% state income tax). Our team managed the domicile change documentation, ensuring clean separation from California's aggressive residency audit practices.

$145,000
Annual Savings
AE Tax Advisors Team
Nexus Planning E-Commerce

E-Commerce Company Restructures Operations to Reduce Nexus in Five High-Tax States

An e-commerce company with employees and inventory in seven states restructured operations to consolidate physical presence. By eliminating nexus in five high-tax states, the company reduced its multi-state income tax burden by $82,000 annually.

$82,000
Annual Savings
AE Tax Advisors Team
Apportionment Sales Factor

Software Company Leverages Single Sales Factor Apportionment for $120K Savings

A software company headquartered in a state using single sales factor apportionment shifted marketing efforts to generate more revenue from customers in no-income-tax states. This reduced the sales factor numerator in the home state, cutting state taxes by $120,000.

$120,000
Tax Savings
AE Tax Advisors Team
State Credit R&D Credit

Technology Firm Claims $95K in Combined State R&D Credits Across Three States

A technology firm with development teams in three states claimed state-level R&D tax credits in each jurisdiction. Our team ensured proper allocation of qualifying research expenses and coordinated credit claims, generating $95,000 in combined state tax credits.

$95,000
Tax Credits
AE Tax Advisors Team
State Relocation Pre-Sale Planning

Founder Relocates to Florida Before $8M Business Sale, Avoiding $300K in State Capital Gains

Eighteen months before a planned $8M business sale, the founder relocated from New York to Florida. By establishing Florida domicile well in advance and satisfying safe harbor requirements, the entire capital gain was taxed at Florida's 0% rate, saving $300,000.

$300,000
Tax Savings
AE Tax Advisors Team
Nexus Planning Remote Workforce

Company Manages Remote Employee Nexus Exposure Across Twelve States

A company with 40 remote employees in twelve states faced nexus and withholding obligations in each jurisdiction. Our team implemented a state tax compliance framework and identified $55,000 in overpaid taxes from improper withholding allocations.

$55,000
Tax Recovery
AE Tax Advisors Team
Apportionment Cost of Performance

Consulting Firm Reduces State Tax by Sourcing Revenue to Cost-of-Performance State

A consulting firm operating in a state that uses cost-of-performance sourcing relocated its primary service delivery team to a no-income-tax state. This shifted the majority of revenue sourcing, reducing the firm's state income tax by $68,000 annually.

$68,000
Annual Savings
AE Tax Advisors Team
State Credit Historic Rehabilitation

Real Estate Investor Claims $180K State Historic Rehabilitation Tax Credit

A real estate investor rehabilitating a historic commercial building in a state offering transferable historic tax credits generated $180,000 in state credits. The credits offset state income tax and the excess was sold to other taxpayers for $0.85 on the dollar.

$180,000
Tax Credits
AE Tax Advisors Team
State Relocation Dual Residency

Executive Resolves Dual Residency Dispute Between New York and Connecticut

An executive living in Connecticut but working primarily in New York City faced taxation in both states. Our team analyzed the allocation rules, documented days worked in each state, and filed properly to claim credits, eliminating $42,000 in double taxation.

$42,000
Tax Savings
AE Tax Advisors Team
Nexus Planning Holding Company

Multi-State Business Creates Delaware Holding Company for IP Royalty Planning

A business operating in four states created a Delaware holding company to own intellectual property. Royalty payments from operating entities to the holding company shifted income to Delaware's favorable tax regime, reducing combined state taxes by $75,000 annually.

$75,000
Annual Savings
AE Tax Advisors Team
Apportionment Manufacturing

Manufacturer Optimizes Three-Factor Apportionment by Relocating Payroll Function

A manufacturer in a state using three-factor apportionment (sales, payroll, property) relocated its payroll processing and administrative staff to a lower-tax state. This reduced the payroll factor in the high-tax state, saving $38,000 annually in state income taxes.

$38,000
Annual Savings
AE Tax Advisors Team
State Credit Job Creation

Growing Company Captures $110K in State Job Creation and Investment Credits

A company expanding operations in a state offering job creation incentives hired 25 new employees and invested $2M in equipment. Our team secured $110,000 in combined job creation credits, investment tax credits, and training grants over three years.

$110,000
Total Credits
AE Tax Advisors Team
State Relocation Retirement

Retiring Couple Relocates From New Jersey to Tennessee, Saving $65K on Retirement Distributions

A retiring couple with $700,000 in annual retirement plan distributions relocated from New Jersey (10.75% top rate) to Tennessee (0% state income tax). The move saved $65,000 annually in state taxes on pension, IRA, and Social Security income.

$65,000
Annual Savings
AE Tax Advisors Team
Nexus Planning PL 86-272

Sales Company Relies on PL 86-272 Protection to Avoid Income Tax in Eight States

A company with salespeople soliciting orders in eight states relied on the federal PL 86-272 protection, limiting in-state activities to solicitation only. Our team audited each state's activities to confirm compliance, preserving $48,000 in annual income tax protection.

$48,000
Annual Protection
AE Tax Advisors Team
Apportionment Throwback Rule

Company Eliminates Throwback Rule Exposure by Establishing Nexus in Destination State

A company headquartered in a throwback rule state was paying tax on sales shipped to states where it had no nexus. By establishing minimal nexus in those destination states with lower tax rates, the company eliminated throwback and saved $32,000 annually.

$32,000
Annual Savings
AE Tax Advisors Team
State Credit SALT Cap Workaround

Pass-Through Entity Elects State-Level Tax to Bypass $10K SALT Deduction Cap

An S-Corp with three owners elected the state pass-through entity tax (PTET), paying state income tax at the entity level. This allowed the full state tax to be deducted on the federal business return, bypassing the $10,000 individual SALT cap and saving $28,000 per owner.

$84,000
Combined Savings
AE Tax Advisors Team
State Relocation Part-Year Returns

Mid-Year Relocation From Illinois to Wyoming With Proper Income Allocation Saves $58K

A business owner relocated from Illinois to Wyoming mid-year. Our team filed part-year resident returns in both states, properly allocating income earned before and after the move. Careful sourcing of a $420,000 bonus to the post-move period saved $58,000 in Illinois tax.

$58,000
Tax Savings
AE Tax Advisors Team
Nexus Planning Economic Nexus

SaaS Company Analyzes Economic Nexus Thresholds in 15 States to Prioritize Compliance

A SaaS company with customers in 30 states analyzed economic nexus thresholds in each jurisdiction. Our team identified 15 states where the company exceeded the threshold and prioritized filings, uncovering $22,000 in available credits that offset compliance costs.

$22,000
Credits Identified
AE Tax Advisors Team
State Credit Film Production

Production Company Captures $160K in Transferable State Film Tax Credits

A production company filming in a state offering generous film tax credits generated $160,000 in transferable credits. The company sold $120,000 in excess credits to other taxpayers at $0.90 per dollar while using the remainder to offset its own state liability.

$160,000
Tax Credits
AE Tax Advisors Team
Apportionment Service Business Market Sourcing

Professional Services Firm Reduces Home State Tax Through Market-Based Sourcing Rules

A professional services firm headquartered in a high-tax state discovered that market-based sourcing rules assigned service revenue to the client's location rather than the firm's. By properly applying market sourcing, $2.1M in revenue shifted to no-tax states, saving $15,000.

$15,000
Tax Savings
AE Tax Advisors Team

Operating in Multiple States?

Our team helps businesses and individuals navigate multi-state tax complexity, identify savings opportunities, and implement compliant strategies across jurisdictions.

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