What are employee state registrations?

Employee state registrations are the process of registering an employee with various state agencies. If an employee lives in, or moves to, another state and works remotely for your startup, legally that means that your company has a presence in that state. In many states, this is technically considered a nexus, which means you are required to register the company and employee in that state and pay the appropriate employment taxes. At the end of the year, your company will need to file the corporate income tax for that state, and a sales tax if a product was sold there.