Sales Tax Concepts & Requirements

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Handling sales tax as an ecommerce seller can feel overwhelming, especially when selling across multiple states. The key concept to understand is nexus — the connection between your business and a state that creates a tax obligation.

Economic nexus thresholds (typically $100,000 in sales or 200 transactions in a state) mean most growing ecommerce businesses have nexus in multiple states whether they realize it or not. If you’ve crossed those thresholds and aren’t collecting and remitting, you’re accumulating liability. Get a nexus study done, understand where you’re exposed, and get compliant. The longer you wait, the bigger the problem grows.

Want a clearer path for your business? Your Profit Team helps ecommerce owners make confident decisions with real numbers and the Profit First method.

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About the author 

Cyndi Thomason

Cyndi is a mom and author of Profit First for Ecommerce Sellers and Motherhood, Apple Pie, and all that Happy Horseshit. She's also a speaker and thought leader in ecommerce accounting and Mom Entrepreneurship. Cyndi is the founder of Your Profit Team and bookskeep, which provide CFO advisory and Profit First accounting services to hundreds of ecommerce businesses around the world. When not helping business owners or her team, Cyndi can be found in her garden.

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