Do you know what states your business or your clients have a taxable presence in? Do you know what activities your business is conducting across the country? Has the activities your business conducts across the country changed?

State tax laws regarding nexus continue to change either through legislation or interpretation by the courts; therefore, it is very important to gain an understanding of nexus, and to determine what states your company has a filing obligation or tax liability exposure.

NOTE: Steps can be taken to mitigate this exposure.

What is “Nexus”?

Nexus, in simple terms, is having a taxable connection or presence with a state.

Why Should I Care?

If you are a corporation, pass-through entity (i.e., LLC, partnership S corporation), nexus will determine what states the entity is required to file returns and pay tax. If you are a partner, member of an LLC, or a shareholder of an S corporation, the nexus determination affecting the entity within which you own an interest, will determine what states you file in as an individual (in addition to your state of residency).

To read the rest of this article by Brian Strahle, please go to http://bit.ly/9KIKHk.