Warehousing

Whichever state you register your business in, you must file taxes in that state. For ex- if you have company registered in NJ and have warehouse in NC then whatever the formalities are, you must fulfill them from the compliance perspective for both NJ and NC.

One potential benefit of having everything, let us say your company’s registered office and warehouse, in the same state is that you will not be exposed to the tax filings, compliance formalities of any other state.

Subsequent question: When you say formalities, do you mean just reporting is to be done or do we have to pay additional taxes in NJ as well as in NC?

No, not only reporting but in fact, there can be additional taxes. For ex- there is a minimum tax of $500 in NJ and this means that even if you have no activity performed in NJ, you will still pay $500 as minimum tax to NJ and similarly NC will charge you $800. So, let's say a) you register the company in NJ and have a warehouse in NC, and b) let's assume you did not have made any profit in either of the states. Now, in this case, you still will pay $500 to the State of NJ and $800 to the State of NC.

The federal income tax is flat at 21% and the state tax varies between 6% to 9%. For the rough estimation, you should assume the minimum tax will be 25% and the max tax will be 30% of the profit irrespective of whichever State your business is exposed to.

Yes, you will have to pay more taxes because each state has its own minimum tax requirements, and you will have to file taxes in both states, which will raise your taxes in the long run.