Texas incorporation leads to substantial nexus.

Regardless of other activity or lack there of, if a company is domiciled in Texas it has substantial nexus and must collect and remit sales and use tax accordingly. The only way to change this status is by dissolution and then incorporating in another state. (Letter, Texas Comptroller of Public Accounts, No. 200209447L, Sept. 19, 2002.)

Posted on December 15, 2002