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Is registration with the Secretary of State (to do business in their respective states) sufficient to establish nexus?

Full Question: Is registration with the Secretary of State, in most states, to do business in their respective states sufficient to establish nexus in the state?

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Answer:

Diane Yetter photoHistorically the requirement to register with the Secretary of State was not required in order to register for sales and use tax and would not generally establish nexus. However, it would be necessary to determine the reason you are registering with the Secretary of State. Nexus is established through the presence of people or property in the state. If the reason you are registering with the Secretary of State is because you have leased property in the state, that alone will create nexus. Lessors establish nexus wherever they have leased property. If you need assistance determining whether you have nexus in certain states, or based on this response realize you have prior period nexus issues that need to be addressed, we can assist you with evaluating your options under a consulting agreement.

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