Sales Tax for Non-Residents: The Economic Nexus Trap Explained
US Sales Tax for Non-Residents: The Economic Nexus Trap Explained There is a dangerous myth circulating in the international founder community. It goes like this: "I live outside the US, my LLC is in Wyoming, and I don't have any physical offices in America. Therefore, my US tax liability is strictly zero." While that statement is generally true for Federal Income Tax , it is completely false when it comes to State Sales Tax . If you run a Shopify store, an Amazon FBA brand, or even a SaaS business, and you sell to customers located in the United States, you are subject to the local tax laws of all 50 individual states. If you cross certain revenue thresholds, you are legally required to collect a 5% to 9% sales tax from your buyers at checkout and remit it to the state. Ignoring this can result in catastrophic audits, seized funds, and business closures. Here is everything non-resident founders need to know about US Sales Tax. Understanding "Nexus":...