The questions this tool walks you through
Here is what the checker asks and why each step matters. Prefer to talk it through? Contact us and we will help directly.
Are the products or services you sell generally taxable to the end customer, rather than exempt items like most groceries, prescription drugs, or genuine resale sales?
If what you sell is broadly exempt or you only sell for resale, a sales tax collection duty may never arise even where you have nexus - confirm taxability state by state.
Document the exemption or resale basis and keep valid, current resale and exemption certificates, since on audit the seller - not the buyer - bears the burden of proving a sale was non-taxable.
Official guidance: Multistate Tax Commission nexus resources
In any state outside your home state, do you have people or property - remote employees, a traveling salesperson, contractors, an office, or inventory stored in a warehouse or fulfillment center?
Physical presence creates nexus on its own, before any dollar threshold; inventory in a third-party fulfillment center commonly counts as property in that state.
Register in each physical-presence state as of the date the presence began; physical presence establishes substantial nexus under Complete Auto Transit, Inc. v. Brady, 430 U.S. 274 (1977), and P.L. 86-272 offers no protection from sales/use tax collection.
Official guidance: Multistate Tax Commission nexus resources
In at least one state, have your sales into that state passed the economic nexus threshold - commonly around $100,000 in sales or 200 separate transactions in a year, though the exact figure varies by state?
After the Wayfair decision, most states impose collection duties on remote sellers once sales or transaction counts cross a stated threshold, with no physical presence needed - confirm each state's current number.
No registration is required yet under South Dakota v. Wayfair, 585 U.S. 162 (2018); track sales by state each month and set alerts before any state's economic nexus threshold is reached.
Official guidance: Multistate Tax Commission nexus resources
Do a meaningful share of those sales go directly to customers - through your own website, phone, or invoices - rather than only through a marketplace like Amazon or Etsy that already collects the tax for you?
Marketplace facilitators generally collect on the sales they process, but direct sales are yours to collect and remit; the split determines whether registration is genuinely required.
Register for economic nexus under South Dakota v. Wayfair, 585 U.S. 162 (2018) and start collecting on your direct sales in each threshold state. Confirm the marketplace facilitator collects under each state's marketplace-facilitator statute and register only where your direct sales independently require it.
Official guidance: Multistate Tax Commission nexus resources