Margolin Minute: The importance of buy/sell agreements
If you and I had a business where we provided all of our services out of state A, we never go into state B, but state B adopted this economic threshold of $500,000 of sales to customers in their state as sufficient, then they could pull us into that state for income tax purposes. Basically because we had a very good client in that state that we provided services to, albeit none of those services were performed in state B. They were all performed in state A. That's an area that I think more and more businesses in the consulting area, cloud-based businesses, even businesses that sell retail but don't use any type of physical location in remote states to the affect the market, those businesses can be subject to potential nexus.