Traders have unique tax issues on state and local income tax returns for business entities and individuals. Moreover, state and local tax regimes vary significantly. The preferred business entity for a trader is an S-Corp pass-through entity, which is free of entity-level federal taxation. Some states and cities subject S-Corps to taxation. In my five-part series for Forbes, “Trader Tax Battle Of The States,” I focus on state and local tax systems for S-Corps, LLCs, and partnerships. I mention basic information about individual income tax, estate and inheritance tax regimes. A Few States Tax S-Corps, But Traders Can Reduce The Burden California Vs. Texas New York Vs. Florida Midwest Vs. Southeast Top 10 States New Jersey, Washington & Massachusetts Nevada Vs. New Hampshire - (link coming soon on http://www.forbes.com/sites/greatspeculations) Do you have any state and local tax question?