NEXUS for E-Commerce

Navigating the Sales Tax Labyrinth: For online businesses, finding their way through labyrinthine sales tax rules can feel like a never-ending puzzle. One wrong turn, and unexpected tax liabilities and penalties can appear out of thin air. Understanding sales tax nexus is the key to compliance and avoiding costly setbacks. Let's dive into the "Big Four" of Sales Tax Nexus: 1?? Physical Nexus: The brick-and-mortar scenario. Having a physical presence like a store, office, or warehouse in a state creates nexus. 2?? Economic Nexus: After the landmark Wayfair vs South Dakota ruling, states adopted economic nexus laws. Meeting certain sales thresholds triggers a sales tax obligation, regardless of physical presence. 3?? Affiliate Nexus: Partnered with another entity? If they have physical nexus and assist with sales, you may be held responsible for collecting sales tax. State laws vary, so analyze with care. 4?? Click-Through Nexus: It applies to online businesses that use in-state affiliates to generate sales through website links. This emerging form of nexus is gaining attention, but laws differ across states. Our seasoned professionals provide accurate and comprehensive sales tax nexus studies, tailored to your business. Whether you're an e-commerce business, a brick-and-mortar store, or a mix of both, we've got you covered. Let us guide you through the process and ensure your business stays on the right side of the law. Discover the Source Advisors difference today.