Economic Nexus - Apportionable Income
Effective June 1, 2010, an “economic nexus” standard rather than a “physical presence” standard was created with regard to certain activities. It requires some businesses earning “apportionable income” (including activities subject to the service and other activities and royalty B&O tax classifications) from Washington customers to be subject to taxes whether or not they maintain offices in the state or have any physical presence.
Effective September 1, 2015, the time frame for determining whether a business has exceeded any of the economic nexus thresholds changes from the current tax year to the immediately preceding tax year. Part II of ESSB 6138.
How do I register my business in Washington State?
Register your business online where you will find step-by-step instructions, information and resources.