Nexus for Michigan when you have a business out of state?
Anyone know about Nexus in Michigan? I have a friend who comes to the state for help in my work during my busy season. I pay him and give him a 1099 at year end. He also mentioned some of his friends for my company. They live in Michigan, the goods are sent directly from my supplier. Perhaps the $ 2000 sales in the last 7 years. I am responsible for Nexus?
You will have to check the michigan.gov/treasury web site. There is a new business tax (MBT) in Michigan effective 1/1/08 that makes changes from the old SBT tax.
The definition of nexus changed with the new tax structure – but since our wonderful legislators likes to make last minute decisions, we are kind of ignoring the new taxes until this tax season is over, then we will get familiar with the new laws when we can breathe and have time to really read the instructions…