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Old 04-23-2014, 11:53 AM
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Question physical presense

This has probably already been answered, but i can't find it.

I am opening a webstore.
My LLC is registered in NM, but my official address is a mailbox in NC. My inventory and orders will ship to and from SC.

Where is my "physical presense" for figuring out from which customers to collect a sales tax?

Thank you for your time and help.



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Old 04-23-2014, 01:21 PM
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Join Date: Oct 2010
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Quote:
Originally Posted by CopBulBul View Post
This has probably already been answered, but i can't find it.

I am opening a webstore.
My LLC is registered in NM, but my official address is a mailbox in NC. My inventory and orders will ship to and from SC.

Where is my "physical presense" for figuring out from which customers to collect a sales tax?

Thank you for your time and help.
The definition of a physical presence is quite broad and includes permanent and temporary locations. Businesses without a physical presence in a state may be challenged to know if they should collect sales and use tax.In general, regardless of your sales method i.e. internet, phone, mail, a company that has physical presence in a state is required to collect sales tax on any taxable items delivered to that state. To determine if you have physical presence, you need to check if have retail facilities, a warehouse, or any office space in a state? Or if you maintain retail or warehouse facilities that give you physical presence. Also, having an office for employees, even for business activities unrelated to mail order sales, will give you physical presence. Or do your employees or you enter a state for purposes of taking and transmitting orders from other states? If your employee or independent contractor goes into a state to take or transmit orders, your business may have physical presence in the state. However, contracting with a common carrier to deliver mail order goods does not constitute physical presence. Or check if your delivery vehicles frequently enter a state for purposes of delivering property? Frequent deliveries in a state by your trucks will give you physical presence in the state.



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