Tax
Nexus
Nexus is a connection between a business and a US state sufficient for that state to impose tax or registration obligations. Nexus arises from physical presence, such as staff or inventory, or from economic activity exceeding a state's sales or transaction thresholds.
In plain terms: Enough of a link to a state that the state can tax you.
Why it matters
The concept that defeats forming in a low-tax state while operating elsewhere, and the one that catches e-commerce sellers whose inventory is moved into warehouses in states they have never visited.
Read the full guideUS business taxes