You might think you’ve found a simple workaround: don’t charge your customers sales tax, and you won’t have to deal with collecting, filing, or remitting anything. Easy, right?
Wrong.
Many e-commerce businesses think if they never collect tax, they’re in the clear. But states see it differently.
Whether you collect it or not, sales tax obligations don’t magically disappear. If your business meets a state’s economic nexus threshold—through sales volume or transaction count—you’re legally responsible for that tax. And if you didn’t collect it from your customers? That burden shifts directly to you.
Here’s what that might look like:
- You sell $100,000 worth of products into California but never charge sales tax.
- California’s threshold is $500,000—so you think you’re safe.
- But then you hit 200 transactions in a year—enough to trigger nexus in several states.
- Suddenly, you owe thousands in sales tax… out of your own pocket.
Even if you didn’t know, even if your prices were “tax included,” even if you thought your platform handled it—the state will still expect their cut. And they’ll tack on penalties and interest for every month you were noncompliant.
It’s a scary realization for many sellers. But the good news? You can fix it before it snowballs. By tracking where you have nexus, registering in the right states, and using software or expert help to stay compliant, you can protect your business—and your bank account.
Interested in a no-obligation free consultation? Schedule a time with us here :
https://yellowbrickfinancials.hbportal.co/schedule/663165633aaf34001f4c93c2
