School of Accountancy
Laws can vary significantly in taxing multijurisdictional companies depending on a company's degree of corporate presence in the taxing state, the type and source of income earned, and the type of property used or held in the state. Several critical factors can determine a company's tax liability in a state, including the location of the company's commercial domicile. The US Supreme Court's decision in the Wheeling Steel case regarding commercial domicile is overriding in federal, as well as state courts. Accordingly, multistate companies and their tax advisors should consider the location of central management activities when planning to start or expand a business. Other factors contributing to the determination of commercial domicile also should be reviewed in considering locations for production, administration, and sales functions, in order to minimize the overall tax burden.
Journal of Multistate Taxation and Incentives
Clements, Bruce. "Factors to be Considered in Determining a Corporation's Commercial Domicile." Journal of Multistate Taxation and Incentives 13.7 (2003): 6-13+