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Submission + - Telecommuting == "Doing Business in a State"? (gigaom.com)

medcalf writes: Apparently a New Jersey tax court recently held that if a company has just one employee telecommuting from that state, the company is subject to corporate taxation in that state. This has to discourage the use of telecommuting, at least by smaller companies that don't already do business across a lot of states, if it stands. In particular, it could be devastating to the "app economy", where employees of a very small company may each be in a different state. (It seems to me that the ruling and the underlying law are a state usurpation of Federal interstate commerce powers, but that doesn't mean the Federal courts will feel the same way.)

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