Do I need to register my company in another state?

As businesses increasingly sell goods, hire employees and operate the confines of a multiple state, they often find themselves asking: “I’m operating in the following states…do I need to register as a foreign entity in each state?” The answer is more complex than it lets on.

There’s a difference between a sales tax nexus (where a company must pay local state taxes), and the economic nexus which necessitates registering a company as a foreign entity with another state’s Secretary of State. While much has been said about the former, this tool focuses on the latter.

This 50 state survey should help track the various standards in each state, which may require you to register. As always, don’t rely solely on this resource – always check with your attorney.