State & Local Tax (SALT)

Residency, nexus, and state tax disputes handled by an attorney with an LL.M. in Taxation — for individuals and businesses navigating Texas and California.

Licensed in Texas & California

The tax you can't afford to overlook

State and local tax — SALT — is the tax imposed by states, counties, and cities rather than the federal government. It covers state income tax, franchise and business taxes, sales and use tax, and property tax. Because every state writes its own rules, SALT questions turn on where you live, where you do business, and how your affairs are arranged across state lines. Fried Law advises individuals and businesses connected to Texas and California, and coordinates SALT with your federal picture through the firm's federal tax practice.

Where the firm helps

SALT planning

Thoughtful planning arranges your personal and business affairs to be state-tax-efficient and compliant before problems arise — considering how income is sourced, where a business is taxed, and how a move or a transaction changes the picture. The goal is to avoid unwelcome surprises from a state you did not expect to owe.

Residency & nexus

Residency determines which state can tax your income, and it is a frequent issue for people relocating — especially between California and Texas, since Texas has no state personal income tax and California does. For businesses, nexus is the parallel question: whether activity in a state creates a taxable connection there. Getting both right, and documenting them, is central to SALT.

State tax controversy & audits

When a state taxing authority opens an audit — a residency audit questioning whether you truly changed states, or a nexus audit questioning a business's obligations — the firm can help you respond to notices, organize your documentation, and represent you through examination and appeal in Texas and California. Every matter depends on its facts, and no outcome can be guaranteed.

Business state-tax considerations

Businesses face a distinct set of state taxes. Texas imposes a franchise (margin) tax on many entities even though it has no income tax, and California applies its own income, franchise, and residency rules. Understanding where your business has nexus and what each state expects is essential when you form, expand, or relocate — which ties closely to business law and entity structuring.

An integrated, tax-first approach

SALT rarely stands alone. A relocation touches your estate plan; a business move touches your entity structure; a state audit can follow a federal one. Because attorney Asher Fried holds an LL.M. in Taxation and practices across tax, estate, and business law, your SALT matter is handled with the full picture in view. Flat-fee and fully virtual, in practice since 2012 — schedule a free consultation to talk it through.

Frequently Asked

State & local tax questions

What is SALT (state and local tax)?

SALT stands for state and local tax — the taxes imposed by states, counties, and cities rather than the federal government. It includes state income tax, franchise and business taxes, sales and use tax, and property tax. Because each state sets its own rules, SALT questions turn on where you live, where you do business, and how your affairs are structured across state lines.

I'm moving from California to Texas — how does state residency work?

Texas has no state personal income tax while California does, so residency is a common concern when relocating. Changing your state of residence is about more than a new address: states look at where you actually live, work, and keep your ties. California in particular scrutinizes whether a departure is genuine and permanent. Planning the move carefully and documenting it well helps establish your new residency and reduce the risk of a later dispute.

What happens in a state tax audit?

A state taxing authority reviews your returns and records to confirm the correct tax was reported and paid — for example, a residency audit questioning whether you truly changed states, or a nexus audit questioning whether a business owed tax there. The firm can help you respond to notices, organize documentation, and represent you through examination and appeal in Texas and California. Outcomes depend on the facts and cannot be guaranteed.

Does my business owe tax in a state where it operates?

Possibly. A business can create nexus — a taxable connection — in a state through physical presence, employees, or economic activity, which can trigger income, franchise, or sales-tax obligations. Texas imposes a franchise (margin) tax on many businesses even without an income tax. Reviewing where your business has nexus and what it owes is part of SALT planning.

Complimentary Consultation

Get your state taxes right.

Whether you're relocating, expanding a business, or facing a state audit, schedule a confidential consultation — with a flat-fee quote before any work begins.