Is Flow-Through Nexus for Nonresident Members of LLCs Legitimate?

Arthur Rosen and Nicole Ford wrote this bylined article to discuss flow-through nexus for nonresident limited liability companies, and argued that being a member of an LLC doing business in a state is insufficient to create nexus over the member for tax purposes. “This issue of common law jurisdiction rarely arises in the context of federal taxation, so those who practice in that area may not be fully sensitized to this concern,” the authors wrote.