Mark Macdonald says, “Nearly every U.S.-based product seller is going to have a sales tax due date in January. Some sellers have to file sales tax often and have the whole sales tax thing licked. But many only have to file sales tax once per year. For those sellers, January and it’s many sales tax due dates can be a cold and unwelcome wake up call after the fun and profitable holiday season.

But never fear, the sales tax compliance process can be broken down into five manageable steps. Start here and you’ll be sales tax compliant in no time.

Determine where you have nexus

Forty-five states and the District of Columbia require merchants to collect a sales tax from buyers. The good news is that you only have to collect sales tax in these states if you have what’s called “sales tax nexus.” Nexus is established when you have a significant business presence in a state, which can include things like:

  • Having an office
  • Having an employee”.

Should You be Charging Sales Tax on Your Online Store?

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