What Is Nexus? Do I Have Nexus in California?

What Is Nexus? Do I Have Nexus in California? Nexus is a legal term and what Nexus means is Nexus is essentially code for the level of minimum contacts that you have in a state so if you have a sufficient amount of minimum contacts and those can be physical contacts they can be economic contacts they can be contacts through third parties whether they're independent contractors or vendors those things would tend to trigger Nexus in a particular state so if you have that level of contacts and you meet the Nexus threshold then you could attacks in a particular State so take California for example California has one of the broader Nexus statutes among all of the states so California is a very large economy and has a very robust state revenue department and the laws in California are designed so that if a company has any number of contacts with California than its subjects itself to tax jurisdiction within California so if you have a sufficient amount of minimum contacts with California then you'll probably be obligated to either collect sales tax in the state of California or pay state income tax to California depending on your situation.

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Sam Brotman, JD, LLM, MBA

Owner and Director of Legal
Brotman Law

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