What triggers state & local obligations?

• Physical nexus: employee, office, inventory, in-person service.
• Economic nexus (sales tax): revenue/transaction thresholds (varies by state; many use ~$100k or 200 transactions—verify).
• Local business license: city/county “doing business” inside limits (can include home-based remote employee).
• Payroll nexus: hiring in state → withholding, unemployment, possibly local tax.
• Professional/industry licenses: specific trades (not typical for managed WP ops).

How we decide

• If we have a person or place in a state → assume foreign registration + payroll + check local license.
• Purely remote sales with marketplace collection → sales tax may be handled; entity/local license usually not triggered by sales alone.
• Pure digital services (no onsite) → often no city license; but some cities license home-based employees—verify.

Common Scenarios

Exceptions & Edge Cases

• Short-term travel (few days) rarely triggers city licensing; payroll may still apply for resident employees.
• Some municipalities license any home-based business (even one employee).
• Marketplace collection ≠ income/franchise tax relief; entity may still file returns.

Physical & Payroll Nexus

If any physical presence → assume entity foreign registration + payroll, then check city license.

Economic Nexus (Sales Tax)

Typical triggers cluster around ~$100k revenue or 200 transactions (verify per state). Services may be non-taxable; check definitions.

When Local City/County License is Likely

• Employee regularly works from a home address inside city limits.
• We rent/own a space or list a public office in city.
• We perform onsite client work inside city.

Marketplace / Remote Patterns

• Marketplace-only sales: facilitator usually collects/remits sales tax; entity may not need seller registration but still file income/franchise where applicable.
• Remote services: no onsite, no office, no employees → often no city license; confirm for the municipality.
• Short-term travel: speaking/meetings only → unlikely to trigger local business license.

Structure & Registrations

• Keep one **OpCo** (HQ state). Register as **foreign** where physical/payroll nexus exists.
• Per new state: Registered Agent, entity foreign filing, payroll accounts, and check city license.
• Keep a single **renewals** calendar (state entity, RA, local business license).

Operating Rhythm

• Before hire in state: open payroll accounts; add city license check.
• Quarterly: review sales vs. thresholds; update tracker.
• Annually: renew entities, agents, city/county licenses.