Nexus Questionnaire

With hard economic times, many states are reexamining their potential sources of revenue. One source is out of state businesses that may be conducting business in their state without paying taxes. For instance:

• the State of Louisiana is getting lists of vendors at all trade shows held in New Orleans and sending them registration forms
• the state of New Jersey is monitoring and stopping out of state trucks to request proof of instate registration

Does this mean, if your company crosses the state line, you should be paying tax in another state? Only if the company has nexus (or connection) in the state. Some activities are permitted in a state without creating nexus. Others are not. It’s important to assess the overall impact on your business before beginning or expanding your operations across state borders, such as via the Web or mail order. Inadequate attention to multi state tax obligations could be very costly. A state can demand overdue taxes and penalties back to your company’s first business contact in its jurisdiction. Thus, understanding the state connection and the different aspects of multi state taxes can enable you to operate nationwide without unpleasant tax surprises.  

Click here to review a questionnaire to help identify problem areas and enable you to determine whether or not you will need to file taxes in multiple states.

To contact Feeley & Driscoll, please click here or call us at 1 (888) 875-9770.

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