Member Since: Nov 6th 2018
Nov 8th 2018
I've spent the last two days (and parts of nights) continuing to try to figure this out... I have searched high and low and STILL have no answer as to "do I need a tax ID for each state"?
"Will I be sending out 46 tax forms every quarter (or year) even if my income from that state is $0 just to cover my rear?"
You are correct - it seems that this is great news for tax accountants and the states, but small, one employee (who is also the owner) businesses are going to be destroyed if they venture online.
Nov 6th 2018
You end the article with "Rest assured, economic nexus is changing the world of retail."...
Going from a business that travels in-state from craft fair to craft fair is limiting and going online to establish an ecommerce website seems to be the right step to take, but since Wayfair and this nexus tax issue has been brought to my attention, how can I "rest assured" that this is a good thing?
Most of my waking hours are spent making items to sell. Now, having to take a week or more to register with different states (presumably needing individual tax IDs for each tax district) how on earth is this something I should rest assured over?
What this appears to be doing is prohibiting me from entering the online commerce industry altogether. My profit margins are just enough to supplement my disability income - meaning "not very much" and one simple mistake in filing some local tax could land me bankrupt or worse.
The fact that there is no consistency in nexus rules makes every transaction a potential legal liability for tax problems.
I get that you are writing to a more established business community, but for very small businesses or startups, this ruling is a death knell to even step foot in the online marketplace and that will land me permanently on the disability dole - my goal is to be able to have gainful income and get off and away from disability - the only way that could happen is to branch out to online sales... but this time and effort to stay on top of individual state and local taxes across the US is more than I can handle - hence "How is this a good thing" and how could this be something to "Rest assured"?
South Dakota v. Wayfair has destroyed any chance for me to become self-sufficient and will be the death of my business before it has a chance to launch beyond local craft fairs.