Unsure where you owe sales or use tax
Run Your Nexus Risk CheckAn ecommerce business creates California sales tax nexus when it exceeds 500000 dollars in total California sales during the current or prior calendar year or establishes physical presence in the state.
Ecommerce sellers may create nexus by:
Once nexus exists, registration and collection obligations may apply.
Run Your Nexus Risk CheckCalifornia’s economic nexus threshold is 500000 dollars in total sales into the state during a calendar year.
For ecommerce businesses, this includes:
Transaction count does not matter. Revenue level controls nexus.
Physical presence may arise when:
Even if revenue does not exceed 500000 dollars, inventory in California may create nexus.
Before registering or filing, confirm whether your business has created sales tax nexus in California or Texas.
Run Your Nexus Risk CheckCalifornia marketplace facilitator rules may shift collection responsibility in certain cases.
However:
Understanding how marketplace sales are treated is critical.
If your ecommerce business exceeded 500000 dollars in California sales but did not register, exposure may include:
Many ecommerce brands discover nexus years after growth.
California Back Sales Tax Liability | California Voluntary Disclosure Agreement
Correct nexus analysis should precede registration.
If your online store revenue or inventory may have created California nexus, evaluate exposure before registering.
Run Your Nexus Risk CheckIdentify potential ecommerce nexus exposure before penalties escalate.