What is Nexus?
Nexus is a sufficient connection between South Carolina and a taxpayer which allows the state to impose its taxing jurisdiction on that taxpayer. This could include an activity, transaction, or property. A taxpayer may have Nexus with one or more tax types.
A taxpayer with Nexus in South Carolina is required to file returns and pay any taxes that are due with the SCDOR.
How is
Income Tax Nexus in South Carolina determined?
For Income Tax purposes, economic Nexus is generally sufficient to create Nexus even without a physical presence in the state. Income Tax Nexus can be created by:
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Employees, agents, brokers, representatives, subcontractors, etc. working on behalf of the entity within South Carolina. Nexus creating activities of employees and representatives can range from soliciting sales to performing services for any length of time.
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The presence of property such as goods, offices, real estate, vehicles, etc. physically within South Carolina.
This could include C and S Corporations, Partnerships, Limited Liability, Companies, and Sole Proprietors.
How is Sales & Use Tax Nexus in South Carolina determined?
For Sales Tax purposes, a taxpayer that has a physical presence in the state has Nexus.
Out-of-state retailers (remote sellers) that have no physical presence in South Carolina may have Nexus if they meet certain economic thresholds.
Learn more about Nexus for remote sellers.
What if I’m not sure whether or not I have Nexus in South Carolina?
Complete and submit the NX-100, Business Activities Questionnaire to the SCDOR to determine your Nexus status. The SCDOR will contact you using the information you included on the NX-100 to let you know if you have Nexus or not.
It is important to start with completing and submitting the NX-100 if you do not know your Nexus status, and before
registering your tax accounts on MyDORWAY.
HELPFUL TIP
To avoid your NX-100 being lost in the mail, you have the option to email your completed form to
SCNexus@dor.sc.gov.
Once I know my Nexus status in South Carolina, what is my next step?
Your next step depends on the following factors:
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If you submitted the NX-100, the SCDOR will determine your Nexus status, request additional information, and register you for the tax accounts you need.
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If you believe you had South Carolina Nexus for a period where you did not file returns and make payments as required, contact the SCDOR and request consideration for the
Voluntary Disclosure Program.
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If you know you have Nexus without completing the NX-100, complete our
Business Tax Application on our free and secure tax portal, MyDORWAY, to register for the South Carolina tax accounts you need.
Learn more about MyDORWAY.
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However, if you are unclear about your Nexus status, we recommend submitting the
NX-100 first, and wait for the SCDOR’s response before completing the Business Tax Application.
If I have Nexus with South Carolina, when can I file and pay my taxes?
After you’ve registered your tax accounts, you must file all required returns and make any payments due for each filing period.
Why did I receive a Nexus Questionnaire letter from the SCDOR? What do I do next?
The SCDOR sends a Nexus Questionnaire letter when we have identified your company as potentially making sales or providing services to your customers located in South Carolina. We have looked into your company's activities to determine if Nexus is established for any Sales and Use Taxes and any relevant Income Taxes.
Your Nexus Questionnaire letter will include an
NX-100, Business Activities Questionnaire. Complete and submit the NX-100 to the SCDOR as soon as possible.
