Multi-State Operations
By: Charles L. Telk Jr., CPA, Partner | email
A number of our clients transact business in only one state – their state of domicile, and many of our clients have multi-state operations. Sometimes it is a simple task deciding in which state a company is doing business, oftentimes it is somewhat more complex.
Generally speaking, if you have a physical presence in a state, you must register with that state and file tax returns. A physical location, storage of inventory, or paying an employee are all clear indicators that you have a physical presence, or “nexus” in that state. It becomes more complicated if you sell into a state where you don’t have a physical presence. There are many factors that come into play to decide if you have a nexus in situations where at first glance you don’t appear to have a physical presence.
The purpose of this article is to make you aware of the need to evaluate your operations to determine if you have multi-state filing and registration requirements. We want to make sure that your business is properly registered and is filing necessary state returns in states that you have nexus.
Please contact either Chuck or Cristina in the Des Moines office to evaluate your operations to see if you have a multi-state filing requirement.
