What happens if I have nexus?

You can create nexus in a variety of ways, most of which fall under either physical nexus or economic nexus. 1. Physical nexus is established by the presence of your business in a state. In addition to a store or office, physical nexus may be triggered by off-site employees, warehouse locations, affiliations, even trade shows attendance. 2. Economic nexus is determined based on where your customers are located. If you reach a certain sales volume or number of transactions with residents of a jurisdiction, you can trigger nexus. 3. It’s important to note that you’ll need to register and remit sales tax if you have either physical nexus or economic nexus.