Frequently Asked Questions

If you meet one of the two, you have nexus in the state. You do not have to meet both to have nexus—just one.

If you have a physical presence in a state (e.g., store, employee, inventory), you have physical nexus. Typically, if you exceed $100,000 in sales or 200 individual orders over a year in a state, you may have met the state’s economic nexus threshold. State thresholds may vary.

It depends on the state. Some states, like Florida, require sellers to register as soon as they cross an economic nexus threshold and start collecting tax on the very next transaction.

However, other states, like Kentucky, provide sellers 60 days after crossing their sales or transaction economic nexus threshold.

If you have achieved physical or economic nexus within a state, then yes, you are liable to file and remit sales tax in that state. Our US Sales Tax Guide for Non-US-Based Retailers has more information.

It is important to note that state tax laws differ from federal income tax laws. To mitigate any exposure, stay proactive by contacting us for a free nexus assessment.