Tax and Bookkeeping for 
Small Businesses and Individuals
Tax and Bookkeeping for 
Small Businesses and Individuals
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Sales Tax

What is Sales Tax?

Sales tax is a state and local tax imposed on the sale of goods and certain services. Rates vary by state, county, and city.

Who Needs to Collect Sales Tax?

You must collect sales tax if:
✔ Physical Presence (Nexus): You have an office, store, warehouse, or employees in a state.
✔ Economic Nexus: You meet sales/transaction thresholds (e.g., $100K+ in sales or 200+ transactions in some states).
✔ Taxable Items: You sell products or services classified as taxable in that state.

How to Stay Compliant

✔ Register for a sales tax permit in states where you have obligations.
✔ Collect the correct rate at checkout (tools like QuickBooks or TaxJar automate this).
✔ File returns on time (monthly, quarterly, or annually, based on state requirements).

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