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Ensuring compliance with state tax laws

July 19, 2023

The importance of tax compliance in other states

Reasons for assement and maintaining current checklist. Reasons for assement and maintaining current checklist. Reasons for assement and maintaining current checklist. Reasons for assement and maintaining current checklist. Reasons for assement and maintaining current checklist. Reasons for assement and maintaining current checklist. Reasons for assement and maintaining current checklist. Reasons for assement and maintaining current checklist.

Tool and resource we’re providing. Tool and resource we’re providing. Tool and resource we’re providing. Tool and resource we’re providing. Tool and resource we’re providing. Tool and resource we’re providing.

This is a TOOL to use on an annual basis to ensure you’re maintaining compliance each year. This is a TOOL to use on an annual basis to ensure you’re maintaining compliance each year. This is a TOOL to use on an annual basis to ensure you’re maintaining compliance each year. This is a TOOL to use on an annual basis to ensure you’re maintaining compliance each year.

Key terminology & background

Nexus — blah blah blah

Why does Nexus matter? — blah blah blah

Economic vs physical presence — blah blah

Other things — blah blah blah

Common nexus activities for manufacturers

Installation, training & startup

If your employee provides customer support, training, installation, or maintenance services in another state, it can create nexus. The level and frequency of these activities can impact whether nexus is established.

Repairs, service, & maintenance

Providing repair or maintenance services that require physical presence in another state can also create nexus. If your employee travels to a customer’s location to repair or service your company’s products or equipment, it may trigger nexus.

Employees, sales staff, & tradeshows

If your employee engages in sales activities, such as soliciting orders or closing sales, within a state, it can create nexus. Some states have specific thresholds or rules regarding the level of sales activity required to establish nexus.

Annual nexus assessment

As a reminder, it’s important to review nexus compliance annually as the operations of your business can change over time.


 

Meet the Expert

Tara Torseth, CPA, MBT

Tara focuses her practice on helping clients navigate tax and business planning with ease - helping manufacturers and individuals forge a brighter path forward.

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