My client is a broker of data searches. His company is located in FL, his client is located in Washington, DC, and the supplier of the data is located outside of the US. By way of example DC engages FL to perform data searches. FL sends the request to Non-US, who provides a response to FL, who provides his client (DC) with the response.
DC pays FL a fee for the service, and FL pays Non-US for the information provided. In what state does FL have to pay state tax on this income?
Additionally if FL was setting up a new entity, would it behoove him to do so in FL or any other state in particular?