Question 4: State Tax Bilite Corp is a start-up manufacturer…
Question 4: State Tax Bilite Corp is a start-up manufacturer of auto parts. The business owners are located in a tri-state area, and have some flexibility regarding which states they do business in. Below is some information about the tri-state area, which includes States Q, R, and S. Q R SApportionment Equal 3-factor Double-weighted Sales Sales OnlyThrowback Yes No YesTax Rate 2% 10% 4% As the state tax representative on the team, what advice would you give Bilite from a state tax perspective? The owners want to know: where they should establish their corporate headquarters (which will house the majority of their staff), where they should locate their manufacturing facility and inventory warehouse (where most of their shipping will come from), where they should focus their sales efforts, and where they should (or should not) create nexus for income tax purposes. Please try to address all of their concerns in your answer.