Sales tax is a margin killer. The longer you put off figuring out your (or your client’s) nexus footprint, the more you stand to lose in the long run. Take the first step to full peace of mind when it comes to state sales tax by using the Nexus Risk Calculator to find out where you might have a responsibility to collect and remit sales tax.
At Peisner, we always say to our clients: “Start with Nexus.”
The first thing to know here is that there are two types of nexus – Physical and Economic.
- Physical Nexus is anything that gives your business a physical presence in a state – locations, employees, contractors, inventory, etc.
- Economic Nexus: The thresholds that must be met for remote sellers to be required to collect and remit sales tax. These thresholds are usually revenue or transactions (or both)
This tool will help you quickly determine if you or your client may have either physical or economic nexus (or both) in any given state.
Simply click on the state (or states) you’re interested in and answer a few simple questions to see if you might have nexus in that state.