Hi, sorry for the "stupid" question, but this is the first time I Implement a US subsidiary. Should we count / create a subsidiary for each state or create 1 subsidiary and 1 nexus for each state?

you should only create new subsidiaries if you have a separate government entity, i.e. different companies w/ different EINs / tax reporting needs

Ok, so multiple subsidairy if they actually are multiple legal entities. If the legal entity is only 1 then 1 sub + multiple nexuses

right - i'm not a tax expert but in general you need a nexus in each jurisdiction where you need to remit sales tax

but the nexus is an additional taxation area, no?

not sure i understand the question - i usually set up a nexus in each state in which i need to collect sales tax

and the decision should be related to the single / multiple legal entities or at least usually in Europe this is a common rule

i don't know how the nexus setup relates to subsidiaries specifically

Yes, perfect. So you add additional nexus, not additional subsidiary if you need to collect sales taxes in 2 US states

right - that is correct

Ah ok. So since the legal entity is only one then we will configure 1 subisdiary and create 1 nexus for each country we need to collect sales taxes

to the best of my knowledge, but this is definitely outside of my area of familiarity

I have your same opinion, let's see if someone else will add additional info

Subsidiary = Legal entity Nexus = Tax Jurisdiction (usually country and State/Provinces) Subsidiary -->Nexus 1 ---> Many (federal/country + state level) that means setup the sub for the legal entity, then create the state/prov level nexuses.

Nexus should be in every state you are required to pay taxes... We have a few nexus' for the US as we are liable to pay in certain states where we have a physical presence i think the legal reason is