What does nexus mean?
Whether an entity is required to file business tax returns depends on whether it has nexus with a state. Nexus is defined as some definite link, or minimum connection, between the state and the entity it seeks to tax. Normally, sufficient nexus for income tax purposes (NH Business Profits Tax) is established when an entity owns, leases property or performs services in the state, employs personnel in the state or has capital or property in the state. If you are an out-of-state business that sells or leases tangible personal property in this state, refer to the department’s administrative rule, Rev. 304.01 for an illustrative listing of those activities that create nexus.
