Obtaining this all-important slip of paper is more challenging and expensive in certain states, and for certain businesses. Registering for a sales tax permit usually occurs in several stages, from the initial “Welcome, we want to make doing business in as easy and friendly as possible,” to the more sobering “List of Required Forms.” In some states, additional permits or licenses may also be required. These thresholds vary from $100,000 in sales to $500,000 in sales and 100 transactions details are available in this state-by-state guide to economic nexus laws.Īn out-of-state business that meets a state’s economic nexus threshold must obtain a sales tax permit and start collecting and remitting sales tax according to state and local laws, just like an in-state business. Yet it’s still possible to sell into a state and not establish nexus because all economic nexus laws provide an exception for remote businesses selling beneath the state’s economic nexus threshold. Physical presence in a state is no longer requisite.Įvery state with a general sales tax enacted economic nexus in the wake of the Wayfair ruling, as did Puerto Rico, Washington, D.C., and some local governments in Alaska. (June 21, 2018), businesses with no physical presence in a state can establish nexus through economic activity, or economic nexus. Supreme Court’s decision in South Dakota v.

Having a physical presence in a state still establishes nexus, but thanks to the U.S. Nexus used to be based solely on physical presence, such as employees, inventory, or an office in a state.

You need to get a sales tax permit and comply with sales tax laws in states where you have nexus, which is another word for connection.

Ohio business license cost