How to know if you need to register for sales tax

You need to register for sales tax in any state where you have "nexus," meaning a significant enough connection to that state to trigger a tax collection obligation. Nexus comes from two sources: 1. Physical presence, such as an office, warehouse, employees, or inventory located in the state. 2. Economic nexus, meaning your sales revenue or transaction volume into that state crosses a threshold the state itself sets, even without any physical presence there. Since the Supreme Court's 2018 decision in South Dakota v. Wayfair, states have been allowed to require out-of-state sellers to collect sales tax once they cross this economic threshold, and each state sets its own numbers. If you sell taxable goods or services and have nexus in a state under either test, you generally need to register there before you start collecting and remitting sales tax. Getting registered before you start collecting keeps you compliant from day one. Sales tax registration and the ongoing filings that follow are typically your responsibility as the business owner, though doola can point you toward the right resources. Reseller certificates, which let you buy inventory tax-free because you'll collect tax when you resell it, are issued per each state's own rules. doola's partner Kintsugi specializes in sales tax registration and can help you get set up across multiple states.