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