Before you started your ecommerce business, you may never even have heard the term “nexus determination.” Unfortunately, learning what this term means and how it affects you is necessary for everyone with an ecommerce business. SalesTaxSolutions.US can help you with your nexus determination so that your ecommerce store remains in compliance with U.S. tax laws.
Nexus means connection, and with regard to tax laws, a nexus determination defines the relationship between the business and the taxing authority (usually the state). If you have a business in California and a second location in Florida, it’s easy to see what the nexus determination would be.
Unfortunately, not every nexus determination is so simple. Many factors can go into a nexus determination. For instance, if you have employees who live in other states, this may count as having a nexus in those states. If you use a third-party shipper in another state, that may count as well. But it may not, and that is why nexus determinations are notoriously complex.
Understandably, nexus determination can strike fear into the hearts of business owners across the U.S. because the determination is so important, but also so difficult. When you attempt to learn about the concept on your own, you may come across this definition: “Nexus determination is primarily controlled by the U.S. Constitution, in which the due process clause requires a definite link or minimal connection between a state and the entity it wants to tax, and the commerce clause requires substantial presence.”
If this definition does not help you understand nexus determination, we don’t blame you. At SalesTaxSolutions.US, the professionals who provide nexus help have more than 20 years of experience in federal and state tax and accounting laws. We understand that small and medium businesses don’t always have the funds to keep an accountant on staff, so we offer our services on an a la carte basis, making us more affordable to you.
When you work with SalesTaxSolutions.US, we will examine your records and business model to determine whether you are required to collect sales and/or use tax in particular jurisdictions across the nation. A lot goes into these determinations, and it’s important to use a service with experience that you trust.
Additionally, we assist our clients with sales tax registration. When you sell items to items in other states, you must register in those states to pay sales taxes. The sales tax registration process in each state is different, and it can be confusing and time-consuming. Our clients depend on us to take care of sales tax registration for them.
Making a mistake with nexus determination can be costly. Further, depending on whom you use for your business tax returns, the mistakes may not be discovered for years. This can create a situation in which you owe thousands of dollars in taxes, plus thousands more in penalties and late fees.
Be sure you’re doing business and paying your taxes correctly — rely on SalesTaxSolutions.US for nexus help.
