Businesses must understand how their products and services are taxed in all states where sold. Complying with all sales and use tax rules of the state and local jurisdictions where your products or services are delivered often means collecting and remitting sales tax even if your business has no in-state physical presence. These state and local tax obligations – and the corresponding potential liability for tax, interest and penalties – will grow over time. Moreover, neglecting your sales and use tax obligations could result in a lost opportunity to pass the tax burden to customers as allowed under state tax laws.
If you’re unsure how economic nexus affects your business, take our risk assessment. Answering “yes” to any of the questions is your signal to take action. BDO can help.
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