Nexus: A Four-Point Refresher

3. Affiliate Nexus
Another common misperception is that you can avoid tax liability by setting up a separate corporation for any nexus-producing activities, such as a sales division that employs a field-sales force or a retail-store affiliate. This has led some clicks-and-mortar retailers to book their catalog sales to what’s little more than a paper corporation in the false belief that such a legal nicety is sufficient to provide nexus protection.