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If You Do Business in Multiple States, You Might Owe More Taxes Than You Think

July 20, 2022

Growing their business is a critical goal for many business owners. But the process can be complex and confusing — especially if it involves nexus. The Sales Tax Institute defines sales tax nexus as “the level of connection between a taxing jurisdiction such as a state and an entity such as your business. Until this connection is established, the taxing jurisdiction cannot impose its sales taxes on you.”

Before 2018, a company needed a physical presence in a state for nexus to exist. So, for example, if your business was in California but you had a warehouse in Indiana, you were required to collect sales tax from customers in both states.

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