Sales tax nexus (the link which establishes taxability between a seller and a tax jurisdiction) is a concern for many companies these days. Let's face it - for many businesses (regardless of industry) - it's common for personnel to spend a few days in another state to solicit orders, attend trade shows - or possibly perform work at client locations. It's important to realize that each of these activities can create sales tax nexus - by itself - or in conjunction with other nexus creating activities.
This whitepaper (by Jeff Meigs of TaxConnex) discusses five key areas where companies may inadvertently create nexus (including internet sales, affiliate relationships, travelling sales representatives, trade show participation and employees or agents outside a company's home state) and also provides suggestions on how to avoid the issue. While the whitepaper is written primarily for technology firms - the reality is that this is a "must read" for virtually any company which has a web presence - or any sort of activity which extends beyond its home state.
NOTE: This site does NOT provide client-specific tax advice. Information provided is general and may NOT apply to your particular situation. Do NOT take any action based upon any site content until you have received advice from an independent, qualified tax practitioner with whom you have a professional-client relationship. All content is subject to the disclaimer at bottom of this page.