Nexus: A Four-Point Refresher

The auditor tries to prove that the affiliated companies are managed, financed and operated as a single entity and thus should be treated as one company for tax purposes.

4. In-State Ownership of Tangible Personal Property
Even though a cataloger may have no facilities or personnel in a state, merely holding legal title to tangible personal property may create nexus. For example, you may own inventory in the warehouse of a company that provides fulfillment services, or a retailer that owns raw materials being processed at an in-state factory (e.g., textiles to be cut and sewn into apparel).