This post is by Mark Faggiano, founder and CEO of TaxJar.
When you first started selling online, the chances are that you got into it for the thrill of selling your products, or seeing your brand take off and gaining national attention.
When you are working hard to build your business, it’s easy to overlook the nagging administrative details you’ll face. And one of the most vexing of those is sales tax.
This in-depth guide walks online sellers through the basics of sales tax. It will help you determine where and when you’re liable for sales tax, how much you have to pay, and detail some common scenarios and problems.
The basics of sales tax in the United States
Forty-five states in the United States, and the District of Columbia, levy a sales tax. Merchants who have “sales tax nexus” in these states are required to charge sales tax to buyers.
Sales tax is considered a “pass-through” tax, because the merchant is only holding the taxes collected