As businesses increasingly sell goods, hire employees and operate the confines of a multiple state, they often find themselves asking: "I'm operating in the following states...do I need to register as a foreign entity in each state?" However, the answer is more complex than it lets on.
Most analyses on the subject begin-and-end with the nebulous notion of the whether the company in question has enough contact with a state to develop a "nexus" which would necessitate registration. Yet the standard for a sales tax nexus, is not the same as an economic nexus which would necessitate foreign registration of an entity within another state.
So, we have decided to compile the following 50 state survey, tracking the various standards requiring foreign registration on a state-by-state basis. As always, don't rely solely on this resource - always check with your attorney.
50 State Nexus Online Experience
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.