Sales tax has become one of the most complex compliance challenges for modern businesses, especially e-commerce sellers. Since the Wayfair decision, states can require you to collect tax even without a physical presence. Here is what you need to know.
Understand Economic Nexus
Most states impose a sales-tax obligation once you cross a sales or transaction threshold — commonly $100,000 in sales or 200 transactions. Track your activity in every state where you sell.
Register Before You Collect
You must register for a sales-tax permit in a state before collecting tax there. Collecting without a permit can itself create liability.
- Determine where you have nexus
- Register for permits in those states
- Configure your platform to collect the correct rates
- File returns on time, even for zero-tax periods
Stay Ahead of Deadlines
Filing frequencies vary by state and volume. Missing a deadline triggers penalties and interest. Our sales-tax service handles registration, calculation, and filing so you never miss a beat.
