Sales tax nexus: definition in accounting

For founders

The same idea written for a founder: what it costs a startup that ignores it, and what to do in a real month.

Voluntary disclosure agreementAn agreement in which a business that owes a state tax it never filed comes forward before the state contacts it. In return the state limits how many years back it collects and waives most penalties. Most states offer one, most often used for sales tax.
Registering in a new state: remote hires and nexusA remote hire or nexus in a new state means foreign qualification, payroll tax accounts and maybe a sales tax permit. What to register, in what order.
Sales tax nexus for startups: when you owe tax in a stateSince Wayfair, selling into a state can create a sales tax obligation. How economic nexus works, why SaaS is taxable in some states and when to register.

What it is not called

Each of these is a real word for a different thing. Using it here is what makes a product read as though it was built by someone who has not done the work.

registration

Nearby in the catalog

No component names this concept outright. These are the ones in its part of the system, which is a weaker claim — but a component nothing links to is a component nobody finds.

11Payables (AP)

2 of 2 builtFamily spec

12Close, controls & consolidation

1 of 2 builtFamily spec

Terms this one depends on

Economic nexusA connection with a state created by economic activity alone — sales into the state above a threshold — rather than physical presence. The basis of remote-seller sales tax since South Dakota v. Wayfair (2018), and of many states' income and franchise taxes, where P.L. 86-272 still shields solicitation of tangible goods sales

Also in Tax

Work with this concept

The calculators that compute it and the ledger payloads that carry it. A definition is where a reader starts; these are where they go next.