- Starting a new business requires attention to sales tax compliance to avoid future issues and penalties.
- A sales tax compliance checklist helps new business owners understand sales tax and establish a strong foundation.
- Sales tax nexus determines where a business must collect sales tax, based on physical or economic presence in a state.
- Physical nexus includes having employees, offices, or warehouses in a state.
- Economic nexus is based on revenue or transaction thresholds that vary by state.
- Businesses should assess their nexus status by considering physical presence, employee locations, and sales activities.
- Not all states have a state sales tax; five states do not, but local jurisdictions may impose taxes.
- Verify if products are taxable, as most tangible personal property is, but some necessities may not be taxable in all states.
Source: taxjar.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
