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August 17, 2022

Determine the states in which LL has income tax nexus.

Cass has a business with her twin selling boutique skin care products, Luxurious Lopez (LL). They started off selling at their local San Diego farmers markets. But when they started selling on Etsy their business really took off. LL is headquartered in San Diego, California. LL has sales, employees, property, and commercial domicile as follows:

1. Determine the states in which LL has sales tax nexus, assuming these states have passed Wayfair legislation.

2. Determine the states in which LL has income tax nexus.

3. Determine LL’s California apportionment factors using the three-factor method (assume California is a throwback state).

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