What Is “Presence” for a Business?

Presence refers to any location where your business has a physical footprint or operational activity. This includes more than just your headquarters.

Your business may have presence in a location if you have:

Example: A remote employee working full-time from another state.
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Example: A corporate office in New York.
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Example: A storefront in Texas where you sell products.
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Example: A plant in Ohio where goods are produced.
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Example: A fulfillment center in California that ships to customers.
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You are automatically considered to have presence in the state where your business is legally registered. But you may also have presence in other states based on your business operations.

⚠️ Tax Tip: Having presence in a location may create sales tax obligations, also known as nexus.

Note: A statutory “registered agent” whose only function is to accept legal documents does not by itself create sales- or use-tax nexus. Physical nexus is created if that agent (or any other third-party representative) stores or processes your returned merchandise or other inventory in the state, or otherwise performs in-state activities that help you establish or maintain a market for your products.

* Presence usually requires physical or operational control, not just sales.
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