Tax issues are always there for the small business owner to deal with. It is possible that many business owners have never heard of one tax issue that is called the nexus. What nexus mean literally is simply connection. Having sales contact in any state can make Sales tax nexus required. You may have to pay taxes on your sales, even if your business is in another state.
What determines when to use nexus is still a bit confusing. Establishing a shop or office where you collect the sales tax has been offered as a suggestion, even if that is not needed for the operation itself. Owners who have small businesses or online stores would find that quite inefficient and costly.
The confusion is made worse by the fact that every state determines its own criteria as to what constitutes a nexus. It is possible for you to sell items in two different states ands you will be required to collect sales tax in one state and be exempted in the other.
Interstate commerce has become very convoluted because of sales tax nexus. It is important for owners to keep informed on the laws in any state they do business in, not just the one they operate in. Sometimes you can do business in a state physically and it is actually overlooked. You might sell items at a trade show in some states and not have to collect or pay sales tax. Some states consider even a day's worth of sales subject to their rules.
As a successful entrepreneur make sure you are aware of all the differences concerning sale tax nexus by doing your research. In some states, the presence of one of your catalogues means you are doing business there. If you do not watch this closely, tax auditors from out of state may appear to enforce these laws.
If all states would get on the same page with the same regulations we would have the best solution for the Sales tax nexus. When a consumer shops online, it would be possible for sales tax to be added to the purchase and submitted to the tax collecting agency as part of the whole process.
For more information on sales tax nexus you can check out their site at www.taxconnex.com.
What determines when to use nexus is still a bit confusing. Establishing a shop or office where you collect the sales tax has been offered as a suggestion, even if that is not needed for the operation itself. Owners who have small businesses or online stores would find that quite inefficient and costly.
The confusion is made worse by the fact that every state determines its own criteria as to what constitutes a nexus. It is possible for you to sell items in two different states ands you will be required to collect sales tax in one state and be exempted in the other.
Interstate commerce has become very convoluted because of sales tax nexus. It is important for owners to keep informed on the laws in any state they do business in, not just the one they operate in. Sometimes you can do business in a state physically and it is actually overlooked. You might sell items at a trade show in some states and not have to collect or pay sales tax. Some states consider even a day's worth of sales subject to their rules.
As a successful entrepreneur make sure you are aware of all the differences concerning sale tax nexus by doing your research. In some states, the presence of one of your catalogues means you are doing business there. If you do not watch this closely, tax auditors from out of state may appear to enforce these laws.
If all states would get on the same page with the same regulations we would have the best solution for the Sales tax nexus. When a consumer shops online, it would be possible for sales tax to be added to the purchase and submitted to the tax collecting agency as part of the whole process.
For more information on sales tax nexus you can check out their site at www.taxconnex.com.