Growing their business is a critical goal for many business owners. But the process can be complex and confusing — especially if it involves nexus. The Sales Tax Institute defines sales tax nexus as “the level of connection between a taxing jurisdiction such as a state and an entity such as your business. Until this connection is established, the taxing jurisdiction cannot impose its sales taxes on you.”
Before 2018, a company needed a physical presence in a state for nexus to exist. So, for example, if your business was in California but you had a warehouse in Indiana, you were required to collect sales tax from customers in both states.
