The subject of state and local taxation of a law firm is usually a nonstarter. Most firms file their partnership income tax returns in their domiciliary state and maybe another
Pitfalls of State and Local Taxation
Most firms file their partnership income tax returns in their domiciliary state and maybe another state or two if they feel they enter the state enough to warrant filing. There are nonresident personal income tax filing requirements that come into play as well. Generally, that's the accepted state and local tax filing approach taken by many firms. Unfortunately, that's not the full spectrum of filings that must be considered in this new age of state and local taxation.
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