Your Florida business sells to customers online, ships to three neighboring states, or has an employee working remotely in Georgia. Now you’re wondering: do you owe sales tax there too? The answer hinges on sales tax nexus—the legal connection that decides whether you’re required to register and file in another state. Most small-business owners operate on instinct: they assume out-of-state sales are “untaxable” or that they only owe tax in Florida. That instinct costs you money, compliance risk, and hours chasing late notices. Understanding nexus is the first step to running a multi-state business without surprises. This checklist walks you through the rules, shows you how to detect nexus in your own situation, and flags the mistakes that trip up growing companies. By the end, you’ll have clarity on which states require your registration and filing—and which don’t.
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Does this apply to your business in Florida?
Sales tax nexus is a physical or economic presence that creates a legal obligation to collect and remit sales tax in a state where your customer lives. The Florida Department of Revenue doesn’t control nexus in other states—each state writes its own rules. Generally, if you have a physical location (office, warehouse, employee) in a state, or if you meet that state’s economic threshold (often $100,000 in annual sales), you’ve created nexus and must register to collect tax. This applies to tangible goods and services listed in that state’s tax code.
How the rule works across states
Nexus rules vary by state and have changed significantly since the 2018 Wayfair Supreme Court decision. Before Wayfair, only physical presence triggered nexus; now, economic thresholds (like annual revenue in a state) can create nexus too. Each state sets its own threshold, tax rate, and filing frequency. Florida’s general rule—services not taxable unless specifically listed in Statute 212; tangible personal property taxable unless exempt—doesn’t apply outside Florida. What’s exempt in Florida may be taxable in another state, and vice versa. You need to research each state where you suspect nexus. This is one area where template answers fail: a $150,000 seller to California faces different nexus rules than a $150,000 seller to Texas. Start by identifying the states where you ship most, have employees, or maintain inventory.
Checklist: detect nexus in your business
Physical presence
Do you have an office, warehouse, retail location, employee, contractor, or agent in another state? If yes, you likely have nexus there. This includes temporary presence (seasonal warehouse, trade show staff). Some states say even a mail drop or agent acting on your behalf creates nexus.
Economic presence
Check the sales and threshold rule in each state where you sell. Many states now require registration if you exceed their economic threshold—often $100,000 in annual sales into that state within the past or current year, though some states set it higher or lower. Visit that state’s revenue or tax department website to confirm the current threshold and whether it applies to all sellers or only certain categories (e.g., remote sellers, marketplace facilitators).
Digital goods and remote services
If you sell software, digital content, subscriptions, or services delivered remotely, check the state’s economic nexus rule. Some states tax these; others don’t. A few states tax services broadly; most don’t. Know the state’s law before assuming your service sale is untaxable out-of-state.
Inventory and fulfillment
Do you store inventory in another state—even if it’s at a third-party logistics center? Inventory presence typically creates nexus. If you use a fulfillment service, confirm their location. That location’s state likely requires you to register.
Affiliate and marketplace relationships
Are you selling through an Amazon warehouse, a marketplace platform with nexus in a state, or paying a local affiliate commission? Some states hold the seller liable for nexus through the platform or affiliate, even if the seller has no direct presence. Others don’t. Understand your platform’s responsibility first.
How to register and file in another state
Once you’ve confirmed nexus in a state, follow these steps:
Step 1: research that state’s rules
Visit the state revenue department website. Download or review their sales tax nexus guide. Look for the economic threshold, what products or services are taxable, the filing frequency (monthly, quarterly, annually), the filing deadline (often the 20th of the following period, similar to Florida’s DR-15 deadline), and the form name (each state has its own; Texas uses TXCPA, for example; you won’t use Florida’s DR-15).
Step 2: register for a sales tax permit
Most states offer online registration through their revenue website. Expect to provide your business name, EIN, business structure, a description of what you sell, and expected monthly sales. Registration is usually free and takes a few days to a few weeks. Keep your permit number and activation date.
Step 3: set up transaction categorization and rate tracking
In Florida, you track the 6% state rate plus your county surtax. In other states, the rate structure, exemptions, and special rules differ. Use that state’s rate and exemption lookup tool—most states provide an online calculator or form you can download. If you sell to multiple states, you’ll need to categorize sales by state, then apply the correct rate and exemption rules for each. This is where many growing businesses get tripped up: they apply one rate or rule across all states, creating errors and exposure.
Step 4: file on schedule
File the required return by the deadline each month, quarter, or year. Most states accept online filing; some still require paper. Keep copies of your returns, receipts, and exemption certificates. Late filing or underpayment can result in penalties and interest.
Common mistakes to avoid
Mistake 1: Thinking online sales are always tax-free. A common myth: if you sell over the internet, you don’t owe sales tax outside your home state. Wrong. Economic nexus now applies in most states. If you hit their threshold (often $100,000 in sales into that state annually), you owe tax and must file. Many small sellers exceed this threshold without realizing it. Check your annual sales by state, not just total revenue.
Mistake 2: Confusing customer location with your nexus. You don’t owe tax just because a customer is in another state. You owe tax because you have nexus there—physical presence, inventory, or sales exceeding the threshold. One customer in Maine doesn’t trigger nexus. A warehouse in Maine does. Track your nexus triggers, not individual customer addresses.
Mistake 3: Applying Florida rules to other states. In Florida, most services are not taxable unless specifically listed in Statute 212. In another state, the same service may be fully taxable, or taxable only if certain conditions apply. Don’t assume what’s untaxed in Florida is untaxed everywhere. Review each state’s rule on your specific product or service. This mistake leads to underpayment and audit risk.
Mistake 4: Ignoring exemption certificates and resale documents. In Florida and most states, you don’t collect tax from wholesale buyers or resellers if they provide a valid exemption certificate or resale license number. If you sell to a small business in another state and they claim to be tax-exempt, request their exemption certificate. Without it, you’re liable for the tax. The burden is on you to keep the documentation.
Frequently Asked Questions
What does “sales tax nexus” mean in plain English?
Nexus is a legal connection—usually your physical presence, inventory, employees, or sales volume in a state—that means you must register and collect sales tax there. No nexus in a state, no filing obligation there (unless you choose to register anyway, which is allowed but not required). Think of it as the trigger that turns you from an optional filer to a required one.
Do I owe sales tax in another state if I ship from Florida?
Not automatically. Shipping from Florida to another state doesn’t create nexus by itself. You owe tax in the other state only if you have physical nexus there, or if you meet that state’s economic threshold (usually annual sales in that state). If you’ve never done $100,000+ in sales to that state and have no warehouse or employees there, you likely don’t have nexus yet.
What’s the difference between economic nexus and physical nexus?
Physical nexus means you have a location, employee, or property in a state. Economic nexus means your sales into that state hit a revenue threshold set by that state (commonly $100,000 per year). Both trigger registration and filing. Many states now use economic nexus because it’s hard to avoid once a seller reaches a certain size.
How do I know if I’ve crossed the economic nexus threshold?
Check the specific state’s threshold rule on their revenue website. Then add up your total sales into that state for the past 12 months (or the current calendar year, depending on the state). If you’ve crossed it, you have economic nexus. Do this audit at least once a year—thresholds and rules change. Threshold also vary: some states use $100,000, others $500,000, some use transaction count instead.
Do I need a sales tax permit in every state where I sell?
Only in states where you have physical or economic nexus. If you sell one item to someone in Maine but have no physical presence or inventory there, and your total Maine sales are $50,000 (below a potential threshold), you don’t need a Maine permit. But if you do have nexus, you must register. Voluntary registration is allowed in some states even if you don’t meet the threshold yet, which some sellers do to stay ahead of the rule.
Can an Outsourcing Processing membership help me organize and track multi-state sales data?
Yes. The platform’s automatic transaction categorization helps you organize sales by state, product type, and exemption status—exactly the data you need to detect nexus, calculate tax correctly, and file accurately in each state. This is walked through step by step in our Florida Sales Tax Basics course. For multi-state expansion, proper categorization at the source prevents errors when you register in a new state.
This article is for general educational purposes and isn’t a substitute for advice from a licensed CPA or tax attorney. Rules vary by jurisdiction and change over time—always confirm current requirements with the Florida Department of Revenue or your advisor.
Nexus rules are state-specific and can shift with new legislation or court decisions. Your job as a business owner is to track where you have physical presence, inventory, or sales volume—and then confirm the rules with each state’s revenue department. Once you’ve identified nexus, the filing and payment process becomes routine. The real risk is inaction: not checking, not registering when required, and not filing on time. A simple annual audit of your sales by state, paired with the state’s current nexus rule, keeps you compliant without overwhelming complexity. Build this into your year-end review, and you’ll avoid the late-notice surprises that catch other growing businesses off guard.
For the Florida-specific rules behind this, our Florida sales tax guide breaks down rates, deadlines, and filing steps county by county.