What are the multistate income tax implications

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Question 1. Income tax: What are the federal income tax implications to Ellen? Ex: What forms must she prepare and file, what is her tax rate, etc. You may have to create an assumption or projections about the net income from the business. From your own experience determine the average sales price of a box of mix, the cost of the ingredients, other costs such as shipping, setting up on-line advertisement, etc. and project a reasonable profit for her if she works about 15 hours per week on the project. It's up to you. Attempt to complete the appropriate tax form for the business.

Question 2. What are the multistate income tax implications if she sells her product in her home state and five other states?

Reference no: EM132503046

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