As an FBA seller, does inventory give me nexus to other states?

Yes.

No matter how much revenue your business is generating, sending your inventory to FBA turns your business from one that collects and pays sales tax in a single state to one that could potentially have to do the same in more than a dozen states.

Here’s why – all states that have FBA warehouses say that your inventory counts as nexus to their state. Nexus means that your business has a presence in a state that is significant enough for it to do the following three things:

  1. Register for a sales tax license in that state
  2. Collect sales tax on taxable items shipped to customers in that state (regardless of where the item originates), and
  3. Remit (or pay) sales tax to the state when they to you to (states usually dictate payment frequency).

TaxJar will show you the states where you have FBA nexus in your account Dashboard. You can see how this feature works here.