Multi-State Remote Team Nexus & Carrying Cost Matrix
When a Delaware corporation employs remote team members or opens offices in other US states, it creates physical tax nexus. Select the states where your team works to calculate your true annual carrying costs, minimum franchise taxes, and filing deadlines.
State-by-State Compliance Breakdown
Filing fees, annual carrying taxes, and remote employee nexus triggers for selected jurisdictions.
| Jurisdiction | Foreign Setup Fee | Annual Report Fee | Min. Franchise Tax | Corporate Tax Rate | Annual Due Date | Guide |
|---|---|---|---|---|---|---|
| Delaware (Incorporation Home) | $109.00 | $50.00 | $400.00 (Assumed Par) | 0% on out-of-state income | March 1 (C-Corp) | Calculator |
| California (CA) | $70.00 | $20.00 | $800.00 | 8.84% | Every 2 years / Tax due April 15 | Comparison |
| New York (NY) | $225.00 | $9.00 | $25.00 | 6.5% - 7.25% (plus 8.85% NYC GCT if in NYC) | Biennial during incorporation anniversary month | Comparison |
Does hiring a remote employee create tax nexus in their state?
Usually yes. An employee working in a state generally requires the company to register for payroll withholding and unemployment insurance there, and in most states it also creates the physical presence that makes the company subject to state income or franchise tax and to foreign-qualification requirements.
Being a Delaware corporation does not change this: nexus depends on where you have people, property, and sales, not where you are incorporated.
Does P.L. 86-272 protect a SaaS company?
Generally no. Public Law 86-272 (15 U.S.C. § 381) only shields sellers of tangible personal property whose in-state activity is limited to soliciting orders. Software-as-a-service, consulting, and other services are not tangible goods, and several states treat online activities as outside the protection.
What is economic nexus?
Economic nexus means a state can tax a company because of its sales into the state, even with no people or property there. Thresholds differ by state and by tax: sales-tax thresholds are often $100,000 of in-state sales, while income and franchise tax thresholds vary widely; California’s, for example, is more than $700,000 of California sales.
Track revenue by customer location so you know when a state’s threshold is crossed.
Do I have to register my Delaware corporation in other states?
If the corporation is “doing business” in another state, usually through employees, an office, or significant in-state activity, it must register there as a foreign corporation and appoint a local registered agent. Each state adds its own filing fee and annual report on top of the Delaware franchise tax.
See the state-by-state foreign qualification guides for California, New York, Texas, Florida, Washington, and Massachusetts.