Knowing where and when you’ve established a sale tax nexus can be a real brain teaser. Need some peace of mind? Enroll in our SalesNexusSolver™ program today!
Sales tax nexus refers to the connection between a business (seller) and a state, where the seller is required to register with the state, as well as collect and remit sales tax in the state. Various business activities can trigger a sales tax nexus, including:
Do you have a brick-and-mortar location, office, warehouse, or inventory stored in a state? You have established a nexus with that state, even if you are only renting that physical space.
The South Dakota v. Wayfair ruling allows states to collect sales tax if you reach a certain sales or transaction volume (economic nexus). Currently, 43 states enforce this type of nexus.
Do you have independent contractors or remote employees in other states? You may have triggered a sales tax nexus. Even business travel to a state could establish a nexus.
If you have a relationship with an out-of-state retailer that is conducting business on your behalf, you could potentially establish a sales tax nexus in that state.
Paying someone to send your company referrals or sales? If they are in another state, it’s likely that you have created a click-through nexus and will need to pay sales tax to that state.
If you operate an online marketplace and provide an ecommerce infrastructure, customer service, payment processing, and marketing, you could be required to collect & remit sales tax.
Each state has its own definition and requirements for what constitutes a nexus, which makes it very complicated for those who do business online or across state borders. In addition, how and when to file varies across the states, and a sales tax bond may even be required. To ensure you remain compliant and file on time, be sure to work with a sales tax nexus expert, like the tax professionals at Tax Defense Network.
We know that most small business owners want to do the right thing, but many just don’t know where to start. It can be confusing and complicated, especially for online sellers. Our SalesNexusSolver™ program is perfect for small business owners who are unfamiliar with what creates a nexus, as well as those who do not have the time to stay up-to-date on legislative changes. Through this affordable program, we’ll work with you to determine your responsibilities and help you establish a sales tax nexus compliance process.
Program services include:
With the help of Tax Defense Network, you’ll stay compliant and reduce the risk of an unpleasant tax audit. To learn more about our program and fees, contact us today for a free consultation.