Nexus

The connection between a business and a state that triggers tax and registration duties.

In detail

Physical nexus comes from people, offices, or inventory in a state: one California W-2 employee is enough.

Economic nexus comes from sales, payroll, or property over statutory thresholds ($757,070 / $75,707 in California, 2025 FTB figures).

Either type generally forces foreign qualification plus the state’s annual tax.