Sales Tax Nexus Analysis

SALES TAX NEXUS ANALYSIS 

Sales Tax Nexus Analysis Service 

In order to get into compliance with sales tax, you first must determine which states and when you first had nexus. Once you determine these two factors, you can move forward with your sales tax registrations.

The challenge is overpaying for sales tax by not using a correct starting date on your registrations or underpaying and subjecting your business to a 50% fraud penalty – or worse, Florida considers it a 3rd-degree felony.

The next challenge is determining when you first triggered sales tax nexus within a state. Since the 2018 U.S. Supreme Court Case, Wayfair vs. South Dakota, there are new economic nexus states where you must track both transactions and sales in each state to determine when you first had nexus.

Moreover, you also must track the states where the marketplace facilitator will collect and remit on behalf of the seller (on platforms including Amazon, Walmart, eBay, Esty, and others).

If you are not selling on a marketplace facilitator platform, Shopify for example, you will need to track all 44 states and DC as to when you pass the economic thresholds. Keep in mind, 26 states have transaction thresholds of 200 transactions OR $100K in sales or more.

Finally, some states have special requirements known as a “remote seller notice and reporting.” These requirements have late fees up to $20,000.

A Sales Tax Nexus Analysis is designed to identify where and when your business has triggered nexus activities within a state.

In the end, you will be clear on which states you have nexus and, more importantly, the start date in which your business has triggered nexus in a state.

Below is an image of our Sales Tax Nexus Analysis Spreadsheet that will be completed along with a law view, and an email summary with a complete list of the states to register, not register, register later, or de-register.

Sales Tax Nexus Analysis Overview

Get started at the button below and you will receive our welcome email with the next step in our process.

$897 Standard Nexus Study

U.S. Entity Formation Services

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