If you run a business, sales tax filing can be a huge stress sometimes. Especially when you think about sales tax compliance. Since the wayfair nexus case, almost all states now require companies that have nexus to collect and remit sales tax.
It is very important to keep up with sales tax regulations for your state. You can do so by visiting the Tax Foundation to view the updates from this year. Forbes also has an article that covers some of the changes including those sales made remotely such as internet stores.
Helpful ideas to keep up with sales tax compliance is by sales tax filing by using sales tax software to help you make sure you are keeping things straight. Sellers will need to evaluate sales/use tax responsibilities under both economic nexus thresholds and physical presence standards.
What Constitutes Nexus?
There are many activities that might constitute nexus that could be a risk to companies. For instance sales reps or technicians that are traveling on business into another state. Or attending and conducting business at trade shows in other states. Even affiliates for business in other states could be affected. You’ll have to research to make sure you are up to date on sales tax compliance.
We run small businesses and I am not quite sure how this will affect us at this time, but better to start researching it all now. I may need to connect with a professional and see if it something I need to address or if this is not going to mess with our business.
Have you checked into it yet? Tax laws seem to be pretty tricky and hard to keep up with. Do you use an accountant to make sure you have everything correct? Or do you do it all yourself? Do you feel you are up to date on sales tax regulations for your state?
Do You Need Professional Help?
As our business grows I think hiring an accountant to take over would be smart, right now we are still small though. AT what point did you decide it was time to use a professional?
The Kansas Department of Revenue will require all out-of-state retailers to collect sales tax no matter how much business they do in the state. This even includes resaling on eBay or handmade goods on Etsy. Yikes! Reading this new information is making me want to dig deeper so I can see what Texas has planned for online sales like those.
I no longer have an online store, but was thinking about starting it up again, but I definitely have some research to do before doing so! I want to hear from those of you with online stores in the comments. Let us know how you are handling these changes or if they even affect your business at this point.
I am not a numbers girl and law isn’t something I keep up with very well when it comes to business. So, please make sure you research your state laws that apply for the wayfair tax policy so that you have an understanding of how it may or may not affect you.