Most states impose a corporate income tax, and several tax the income of all business entities. However, in most states, if you operate your business as a sole proprietorship or via a pass-through entity, you must report your business income on your state tax return, unless you are one of the lucky few that lives in a state without a personal income tax
It is important to understand the specific tax requirements that you need to follow in order to stay on the good side of the department of revenue for the states in which you do business. Click on a state on the map below to learn about its business income tax rules.