Which states to collect sales tax in?
If I have LLC in ILLINOIS for my online store, and I decided to use the fulfillment services in Kentucky or Nevada. What state sales tax should I be collecting?
Tony,
If you use fulfillment services that ship the goods you sell from a state (or states) other than the state of your company registration, you would create nexus in that state, and would be required to collect sales tax from sales going to that state (or states).
However, you don’t need to register your company in that state as a foreign entity, unless this is a requirement in order to get sales tax ID/reseller permit.