When most business owners think about sales tax, they think local.
“I’m based in Texas, so I only need to deal with Texas tax, right?”
It seems logical—but unfortunately, that’s not how it works anymore.
If you’re selling in multiple states, you might have tax obligations you don’t even know about.
Thanks to changing laws and the rise of e-commerce, where your customers are matters just as much—if not more—than where you are. That means even if you’ve never set foot in a state, you could still be required to collect and remit sales tax there.
It’s all because of economic nexus. This rule allows states to require sales tax collection from out-of-state sellers once they hit certain thresholds—usually based on revenue or number of transactions.
For example:
- Sell $100,000 worth of products to customers in New York? You might owe New York sales tax.
- Hit 200 transactions in Pennsylvania? You could trigger filing requirements—even if your business is based in Arizona.
And don’t think it’s just physical goods. Many states also apply sales tax to digital products, software, and even online services.
The tricky part? Every state has its own rules. Different thresholds. Different timelines. Different definitions of what’s taxable. It’s no wonder so many sellers fall out of compliance without realizing it.
The result? You could be building up a silent tax liability that comes back to bite you—with penalties, interest, or an audit.
So how can you stay safe?
- Know where your customers are
- Track your sales volume and transaction counts by state
- Research each state’s economic nexus rules
- Register, collect, and file where required
Here’s how to find out where you really owe—and what to do about it.
Interested in a no-obligation free consultation? Schedule a time with us here :
https://yellowbrickfinancials.hbportal.co/schedule/663165633aaf34001f4c93c2
