#nexus
Sales tax nexus rules, economic and physical nexus thresholds, and multi-state compliance requirements
California's SB 122, signed June 29, 2026, extends sales and use tax (7.25% state rate plus local add-ons) to prewritten software and SaaS starting January 1, 2027. Custom software and cloud infrastructure like AWS stay exempt; sellers over 5 million dollars in digital receipts shift collection to purchasers. Here is what's taxable, how billing-address sourcing works, and a compliance checklist.
Illinois eliminated its 200-transaction economic nexus threshold under HB 2755 effective January 1, 2026, leaving a single $100,000 revenue test and offering a limited amnesty window from August 1 to October 31, 2026 for unregistered remote sellers.
Print-on-demand sellers who are merchants of record (Shopify with Printful or Printify) owe sales tax themselves and can deduct real COGS, while royalty-based marketplace sellers (Redbubble, Amazon Merch, Etsy) owe no sales tax because the platform is a marketplace facilitator and have no deductible COGS at all.
State sales tax auditors use statistical sampling that extrapolates a small error rate across years of transactions, so running a self-audit on use tax accruals, exemption certificates, and nexus exposure before a notice arrives produces a materially better outcome than waiting.
A working framework for shed builders, dealer lots, and portable building manufacturers to classify rent-to-own contracts under ASC 842, set repossession reserves, apply Section 179 to mover equipment, and handle multi-state sales tax under Wayfair.
A state-by-state operational playbook for SaaS founders in 2026 covering economic nexus thresholds, taxability maps (NY, TX, PA, WA taxable; CA non-taxable), Stripe Tax vs Anrok vs Avalara vs TaxJar trade-offs, true object test for bundled invoices, and VDA strategy for cleaning up historical exposure.
Twenty-one US states run sales tax holidays in 2026, with seven converging on August 7–9. Here is how Shopify, Amazon, Walmart, and Etsy sellers should configure product taxability, plan inventory, and avoid the per-item cap, bundled-sale, and excluded-venue mistakes that drive audit losses.
How independent yarn shops, quilt stores, and sewing retailers should handle ASC 606 revenue recognition for classes and block-of-the-month subscriptions, marketplace-facilitator sales tax across Shopify and Etsy, Section 179 long-arm equipment write-offs, contractor-versus-employee rules for instructors, and the KPIs—from sales per square foot to subscription retention—that separate thriving needlearts shops from struggling ones.
A bookkeeping framework for course creators on Teachable, Kajabi, and Thinkific covering ASC 606 recognition for cohorts and lifetime offers, state economic nexus after Wayfair, Stripe and PayPal reserve accounting, affiliate commission classification, and Section 179 studio capitalization.
A 2026 field guide to the Streamlined Sales Tax Project — the 24 member states, how the free SSTRS portal works, who qualifies as a CSP-compensated seller for free Avalara, TaxCloud, Sovos, or AccurateTax service, and when SST is the wrong choice for multistate online and SaaS sellers.
Eight states tax remote workers as if they sat in the office. A 2026 guide to the convenience of the employer rule, the May 2025 Zelinsky decision, reciprocity agreements, resident credits, and what multi-state employers must withhold.
Sales tax you collect belongs to the state, not your revenue line. Here are the journal entries, the month-end reconciliation routine, and the multi-state economic nexus rules that keep your books audit-ready.
