What is economic nexus? Economic nexus is a connection between a state and a business that allows the state to require the business to register to collect and remit sales tax. It’s established when a business reaches a certain threshold of sales revenue and/or number of transactions in the state. Who does economic nexus affect? Economic nexus impacts businesses with no physical presence in a state (also known as remote sellers) that sell goods and services in the state and meet or exceed the state’s economic nexus threshold. Economic nexus for sales tax is triggered by reaching a certain amount of sales (e.g., $100,000) and/or a number of sales transactions (e.g., 200 transactions) in another state.

There has been a few posts lately regarding taxes. If you're not utilizing Shopify, I typically recommend Avalara, TaxJar, or TaxCloud depending on what platform you're on. I added @Brandon Cole to the group who works with Avalara to help out if you have questions. Yes, he will be biased towards Avalara 😄 but thats ok cause the software works!