Operating Across State Lines Presents Tax Risks — or Possibly Rewards

Jennifer Deroin Uncategorized

It’s a smaller business world after all. With the ease and popularity of e-commerce, as well as the incredible efficiency of many supply chains, companies of all sorts are finding it easier than ever to widen their markets. Doing so has become so much more feasible that many businesses quickly find themselves crossing state lines.

But therein lies a risk: Operating in another state means possibly being subject to taxation in that state. The resulting liability can, in some cases, inhibit profitability. But sometimes it can produce tax savings.

Do you have “nexus”?

Essentially, “nexus” means a business presence in a given state that’s substantial enough to trigger that state’s tax rules and obligations.… Continue Reading...

register your e-commerce business

Deciding What State To Register Your E-commerce Business In

Jennifer Deroin Sales Tax Nexus

By:  Michelle Dimas, Virtual CPA Specialist

Many people form businesses in their resident state for one of two reasons: 1.) it’s the clear choice, and 2.) Wait… I have options?   Deciding what state to register your e-commerce business in, should be considered carefully by considering multiple factors.

Filing in your state of residence can be a great option for many entrepreneurs, especially those who have a home office, physical store front, and/or do the bulk or all of their business in their home state. Depending on how many of these criteria you meet, you may have limited options or have no other choice but to file in your resident state.… Continue Reading...