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The Hidden State & Local Taxes That Are Quietly Crushing Contractors

The Hidden State & Local Taxes That Are Quietly Crushing Contractors

Most contractors think federal income tax is the big one.

It’s not.

The real profit killers?
State income tax.
Sales tax.
Payroll tax.
Business personal property tax.
Franchise tax.
Local gross receipts tax.

And if you’re working across multiple cities or states, you may have triggered nexus without even realizing it.

I’ve seen contractors lose tens of thousands because:
• Materials weren’t taxed correctly
• Personal property filings were missed
• Workers were misclassified
• Franchise taxes were ignored

These aren’t “small” mistakes. They stack up fast.

Construction margins are tight enough already. The difference between profitable and struggling is often compliance — not revenue.

If you haven’t reviewed your state and local exposure in the last 12 months, you’re guessing.

And guessing is expensive.