By now most businesses that sell online have heard about nexus, the connection that a company has with a jurisdiction that ignites a sales tax obligation. Nexus can be economic and based on a threshold of sales volume in a given time. Nexus can also be physical, created by inventory, employees or reps in a state or jurisdiction.
Nexus can also be dangerous. Companies that acknowledge their sales tax nexus still often overlook its impact and the sales tax obligations it creates.
That can lead to real problems.
Source: taxconnex.com
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