Sales Tax Nexus Primer

PostedSeptember 3, 2025

UpdatedSeptember 3, 2025

Bynous-buildons

Sales Tax Nexus Primer

Decide when to collect/remit sales tax. Use the decision tree, nexus evaluators, marketplace guidance, and the state tracker. Replace heuristics with official links as you confirm them.

Basics

What creates sales-tax obligations?

Physical nexus: employees, office, inventory, onsite work.
Economic nexus: revenue / transactions into state. Many states use ~$100k or 200 transactions (verify), definitions vary.
Marketplace facilitator: marketplaces often collect/remit; direct sales still your responsibility.
Taxability: many services are non-taxable; digital goods/SaaS vary. Confirm per state.

Best-practice defaults here. Swap in state citations and portal links as you confirm them.

Scope

How we operate

Track sales/tx monthly per state (rolling 12-month view).
When close to threshold: prepare registration; start collecting on the effective date.
Prefer conservative treatment when uncertain, then refine.

Flow

Decision Tree (quick take)

State Employees / place in state? Only marketplace sales? Rolling 12-mo sales ($) Transactions (12-mo) Threshold mode Assumed thresholds (edit below if known) Assumed tx threshold

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If marketplace-only, facilitator may collect; entity filings can still apply. Replace thresholds with verified values per state.

Estimator

Economic Nexus Check

Sales ($) Transactions Exclude marketplace sales? Sales threshold ($) Tx threshold

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Some states count all sales; some exclude marketplace or services. Confirm definitions.

Estimator

Physical Nexus Check

Employees in state Office / inventory? Onsite client work? Days in state / yr

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Any physical presence → assume registration duty; verify local business license separately.

Catalog

Taxability Notes (by service)

State Service Taxable? Short note Official link

State	Service	Taxable	Note	Link

Keep notes short. Paste citations as you verify.

Facilitator

Marketplace Rules (quick)

Most states require facilitators to collect on marketplace orders.
Direct site sales remain your responsibility.
Marketplace collection ≠ exemption from returns or income/franchise filings.

Channels

Channel Listing

Channel Collects? Scope note

Channel	Collects	Note

Planner

Registration & Filing Plan

State Threshold crossed on Effective collection date Filing cadence Suggested due-day (edit) Portal link

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Common practice: start collecting the first day of the next period after crossing. Due days vary by state; confirm portal guidance.

Matrix

State Tracker

State	Sales	Tx	Thresh $	Thresh Tx	Crossed?	Registered?	Cadence	Link

State Sales Transactions Thresh $ Thresh Tx Crossed? Registered? Cadence Portal link

Keep cells short. Put long notes in the plan or taxability section.

Export

Exports include tree verdict, nexus checks, marketplace channels, planner, tracker, and taxability notes.