Determining whether you owe sales and use tax, income tax, franchise tax or other business taxes in a state or states in which you do business, but are not physically located is complex. Without realizing it, your business may have nexus, a level of commercial activity within a legal jurisdiction that is sufficient to require a business to meet the jurisdiction’s tax regulations, including the collection and remittance of sales tax. If you have nexus and fail to pay taxes owed, large penalties and fees may be assessed. Ideally, you should assess whether you will have nexus before you begin operations across state lines.
At Goldin Peiser & Peiser, LLP, we take our clients through a thorough process to determine their nexus, beginning with an extensive Multi-State Nexus questionnaire. Some items are our questionnaire include:
- Do you have inventory in a state from which deliveries are made to customers?
- Do you make sales to end-users (consumers)?
- Do you attend tradeshows/fairs?
- Do you engage, train or evaluate employees or customers?
- Do you have any US employees working outside of the US?
- Contact us and we will send you a copy of this comprehensive and important document.