Do you have tax liabilities in another states or countries and not even know it? Nexus is a term that you might have heard but you aren't really sure what it is. Most small businesses don't think about it because it must be something only bigger businesses deal with but states and other countries are getting smarter.
Merriam-Webster defines nexus as a connection between two things. For tax purposes, that connection creates a tax liability. How does a business create a connection for tax purposes?
Under traditional rules, there were three ways to generate nexus in a state:
With the popularity of online shopping and states losing out on sales tax money from those internet sales, states started to redefine how nexus was created. Many...
Join Kristin and I as we go deeper into the future trend of small biz retail. The destination location.
Small businesses are formed for many reasons. We started ours because we loved our hobby of teaching, inspiring, and entertaining people. There are many reasons to start a small biz. You might want to work for yourself or make some more money. However, we live in a changing world. We cannot afford to lose track of the trends in small business or we risk losing the business we love. So we need to understand, where small business if going.
There are many changes that will continue to happen with Small Business. Record numbers will be starting up and failing every year. However, the biggest change is that the older definitions will start disappearing. Local business versus international business and online business versus offline business will merge into business.
It really has been changing with the invention of the online...