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Nexus and Business Income Tax

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Nexus, also known as taxable presence, is a connection a business has with a state that requires them to file and pay taxes in that state.

If a business from another state does work in Minnesota or has a connection to Minnesota, it has nexus, and it may need to file a Minnesota business income tax return.

A business does not need to be physically located in Minnesota to owe state business income tax. Any service received in Minnesota can be taxed, even if the service is performed remotely. If the customer is receiving the service in Minnesota, this would create nexus.

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Impact of Public Law 86-272 [+]

Minnesota Nexus Determination [+]

We will determine if your business has nexus and needs to file a Minnesota tax return. You must complete the appropriate Minnesota Activity Questionnaire. This applies to the following entity types:

C Corporation
S Corporation
Partnership

If you	Complete
Sell products to Minnesota customers Have business activity in Minnesota	Form C101, Minnesota Business Activity Questionnaire
Sell or provide services to Minnesota customers	Form C102, Minnesota Service Activity Questionnaire

Send your completed questionnaire to us either by mail or email:

Email: corp.nexus@state.mn.us

Mail
Minnesota Department of Revenue
Mail Station 5130
600 N. Robert St.
St. Paul, MN 55146-5130

Once we receive your completed questionnaire, we will review it to make a Minnesota nexus determination. If we need additional information or have any questions during our review, we will contact you directly.

Resources [+]

Minnesota Voluntary Disclosure Program

Nexus for other tax types