If you’re selling online, you could owe sales tax in states you’ve NEVER set foot in.

Let that sink in.

You’re running your business from your laptop, maybe packing orders in your living room or selling digital downloads from a cozy home office. You’ve never opened a store in another state, never rented a warehouse, and definitely never set foot in a tax office outside your own zip code.

So why would you owe sales tax somewhere else?

Most business owners think you only owe tax where your business is based—but that’s not how it works anymore.
Before 2018, you’d be right. States could only require sales tax collection if your business had a physical presence within their borders—like an office, employee, or warehouse.

But then everything changed.

In a landmark case (South Dakota v. Wayfair), the Supreme Court ruled that states can enforce economic nexus laws. Now, if your sales into a state hit a certain threshold—even if you’ve never been there—you may be legally required to register, collect, and remit sales tax to that state.

Here’s where things get messy:

  • Some states set the threshold at $100,000 in sales. Others use 200 transactions. A few use both.
  • This applies to physical AND digital goods. Yes, even eBooks, online courses, or downloadable PDFs.
  • Marketplace sellers (like those on Amazon or Etsy) may still need to file returns—even if the platform collects tax for you.

You could be out of compliance and not even know it.
And the longer it goes unnoticed, the bigger the penalties get.

Staying on top of this doesn’t have to be complicated, but it does require awareness. The key is knowing where you have economic nexus, tracking your sales, and setting up the right systems to collect and file properly.

Let me show you how ‘economic nexus’ can cost you thousands if you’re not paying attention.

Interested in a no-obligation free consultation? Schedule a time with us here : 

https://yellowbrickfinancials.hbportal.co/schedule/663165633aaf34001f4c93c2

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