Nexus and registration
Questions about when activity in a state creates a filing or registration obligation, and for which entity in a structure. Tax nexus and Secretary of State registration follow different rules, and federal entity classifications rarely decide either one.
36Nexus and registration articles
Arizona
1 articleCalifornia
10 articles- Does owning a disregarded LLC that operates in California give the owner nexus?Yes: a corporation that is the sole member of a disregarded LLC doing business in California is itself doing business there and owes California franchise tax.Law as of Oct 12, 2026
- When do California's bright-line nexus thresholds make a passive investor a taxpayer?A passive investor is doing business in California if its sales, property or payroll, counting pass-through shares, exceed the section 23101(b) thresholds.Law as of Oct 9, 2026
- Does a foreign corporation with no California activity owe California's minimum tax?Not automatically: a foreign corporation owes California's $800 minimum tax only if doing business or qualified there, subject to a first-year exemption.Law as of Oct 12, 2026
- Should a new investment manager and its funds be limited partnerships or LLCs for California and Texas tax purposes?In California an LLC prepays the $800 annual tax and pays a gross income fee, while a limited partnership pays only the $800.Law as of Oct 23, 2026
- Does a single-member LLC with no receipts owe Los Angeles business tax registration, and how is the account closed?A single-member LLC owes Los Angeles business tax registration only if engaged in business in the city; passive dividends and interest alone do not count.Law as of Oct 17, 2026
- A company opens its first California office: which registrations and taxes follow?A first California office brings separate Secretary of State, Franchise Tax Board and employer filings, plus a seller's permit if it sells goods.Law as of Oct 22, 2026
- Does P.L. 86-272 protect a foreign corporation that sells goods into California?No: California reads Public Law 86-272 as limited to interstate commerce, so it does not shield a non-U.S. seller shipping goods into California from abroad.Law as of Oct 13, 2026
- Do sales reps in California create sales tax nexus below the Wayfair threshold?A seller with salespeople or contractors soliciting in California must collect sales tax from the first dollar; the economic threshold is no safe harbor.Law as of Oct 10, 2026
- What makes a business engaged in business in San Francisco, and what changes when an affiliate leaves the combined group?San Francisco has eleven engaging-in-business tests; Tax Collector guidance keeps an affiliate on a combined group's return only for the months it belonged.Law as of Oct 23, 2026
- Does filing an extension disqualify a taxpayer from California's voluntary disclosure program?An extension should not bar California's Voluntary Disclosure Program, which excludes entities that already filed a return, registered or were contacted.Law as of Oct 12, 2026
Colorado
1 articleIdaho
1 articleIllinois
1 articleMultistate
14 articles- Whose physical presence counts as the company's?Since Scripto v. Carson (1960), contractors building a company's market in a state count as its presence there; a courtesy registration can signal nexus.Law as of Oct 14, 2026
- Where did economic nexus come from?Economic nexus grew from Complete Auto (1977), Quill (1992) and state cases like Geoffrey; Wayfair (2018) then overruled Quill's physical presence rule.Law as of Oct 14, 2026
- Which state gets withholding and unemployment insurance when an employee works in more than one state?Income tax withholding follows where the work is done, with the home state as a second layer; unemployment insurance goes to one state under a four-step test.Law as of Oct 17, 2026
- Does an equipment lessor have income tax nexus wherever its lessees take the equipment?Usually yes: equipment located in a state is the lessor's own property there, and the major taxing states treat owned property alone as nexus.Law as of Oct 13, 2026
- Does an intercompany service charge to an affiliate in a separate-entity market state create apportionment for the provider?Usually yes: a separate-entity market state counts an intercompany service fee in the provider's receipts, sourced where the affiliate receives the service.Law as of Oct 15, 2026
- When must a marketplace facilitator collect tax on third-party sellers' sales, and when is it relieved?A marketplace facilitator collects tax on facilitated sales once it meets a state's definition and threshold, and is relieved only for seller-caused errors.Law as of Oct 13, 2026
- What happens in a multistate nexus study?A nexus study compares a company's activity in each state with what that state taxes, income and sales tax separately, and prices exposure and opportunity.Law as of Oct 10, 2026
- Does Public Law 86-272 protection reach a state's minimum franchise tax?No. Public Law 86-272 limits only net income taxes, so a protected company can still owe a state's flat minimum franchise tax; California takes that position.Law as of Sep 28, 2026
- Which sales rep activities break P.L. 86-272 protection?Public Law 86-272 protection is lost when sales staff do work beyond solicitation, such as repairs, installation, collections or complaint handling (Wrigley).Law as of Oct 8, 2026
- Does a website's interactivity strip a seller's P.L. 86-272 protection?A site that only shows goods, holds a cart and takes payment keeps Public Law 86-272 protection; regular post-sale chat or data-gathering cookies can lose it.Law as of Oct 13, 2026
- Should a company protected by P.L. 86-272 still file state returns?A Public Law 86-272 protected seller may file a no-tax return to start the limitation period, but filing can trigger minimum taxes; the choice is per state.Law as of Oct 14, 2026
- Can a receivables company have nexus where it has no office?Increasingly yes: under economic nexus, a receivables entity with no office or employees can be taxable beyond its state of formation, depending on the state.Law as of Oct 14, 2026
- When does a remote seller's duty to collect start after one large sale crosses the threshold?A remote seller generally owes no collection on the sale that crosses a state's threshold; each state's own rule sets the later date collection begins.Law as of Oct 13, 2026
- What did South Dakota v. Wayfair actually decide?South Dakota v. Wayfair (2018) ended the physical presence rule for sales tax nexus but did not approve any economic nexus threshold as safe.Law as of Oct 14, 2026
Oregon
1 articleTennessee
1 articleTexas
5 articles- How does an out-of-state entity end its Texas franchise tax account when nexus ends?An entity leaving Texas files a final franchise tax report by the 60th day after nexus ends, pays any tax, and withdraws or notifies the Comptroller.Law as of Oct 17, 2026
- Where does Texas source receipts from digital downloads and licenses for franchise tax?Texas franchise tax sources digital download receipts to the payor's legal domicile and license receipts to the extent the licensed right is used in Texas.Law as of Oct 14, 2026
- When does an out-of-state business owe Texas franchise tax with no Texas footprint?Texas franchise tax nexus starts when an out-of-state entity's Texas gross receipts reach $500,000, with no presence needed; many still owe no tax.Law as of Oct 17, 2026
- Is the managing member of a Texas LLC doing business in Texas for franchise tax purposes?Being a Texas LLC's managing member does not alone create franchise tax nexus; the member's own Texas activity, services or $500,000 of Texas receipts decide.Law as of Oct 17, 2026
- How does a foreign-owned company register for a Texas sales tax permit when its officers have no Social Security number?A Texas sales tax permit applicant with an owner, officer or director lacking a Social Security number files paper Form AP-201 by mail, email or fax.Law as of Oct 15, 2026
Washington
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