I Make Sales to Customers in Multiple States. Do I Owe Tax?

I Make Sales to Customers in Multiple States. Do I Owe Tax? Well you might owe tax and the reason for it is a lot of us are used to the old way which was shipping products into another state and not charging tax because you're not in that state why would you charge tax but the way that the legal framework has really shifted is in allowing States to collect tax against companies even if they don't have physical presence within their borders there's been a lot of lost revenue for states with the proliferation of business being done on the internet you know we're talking about billions and billions of dollars in lost revenue so the states have responded by creating these very broad statutes that are designed to allow them to collect tax against out-of-state businesses if they have a certain level of activity in their state so it's really important from a state perspective that you go through your business activities and figure out if you have sufficient minimum contacts with that state and whether those minimum contacts would obligate you to collect either state income tax or state sales tax.


Sam Brotman, JD, LLM, MBA

Owner and Director of Legal
Brotman Law