Business licenses may be required by both county and city authorities. Contact local authorities to find out what is required. The fees are generally due annually and may be subject to penalties if not paid within a specified time. The first year license fee may cost less than the normal fee if the corporation is created several months into the year. Some states limit the maximum business license fee which can be assessed against certain professions.
Some states impose a net worth tax on each corporation operating in the state.
This tax is besides the corporate income tax. Although states generally follow elections made by corporate taxpayers under the Internal Revenue Code, states may provide for certain exceptions. Check the rules in your state. Most states allow all federal elections and deductions unless the taxpayer is not considered a state resident or is not subject to state tax. Dividend received deductions are allowed only to the extent that the recipient corporation and the paying corporation are both subject to the state's taxes.