Have a Tax Question? Ask a Tax Expert
Hello and thanks for trusting me to help you today. I am a tax adviseor with over 15 years of experience.
Having a fullfillment center in a US state constitutes a nexus in that state.
That places you in the sales tax laws for that state.
If you can tell me the state I can give you the specifics
so my warehouse is in illinois. I am a Canadian company and I have no business set up in the US. I gues you are telling me that I should be registered as a US business entity and collect relevant taxes and file returns etc?
Your nexus in the US state (for sales tax) is determined by your using the warehouse in the US. You would need to collect sales tax based on Illinois law. They see a operation such as yours as in Illinois.http://tax.illinois.gov/Publications/Pubs/Pub-113.pdf
This just sales tax not income tax. Sales tax in the US is a state requirement not federal
ok. Thanks... So I should have some type of Illinois status for my business and that will then enable me to collect relevant taxes and file sales tax returns in Illinois?
You would need to register for Illinois sales tax. Yes there are requirements for remitting and for filing returns taht stipulate the sales.
The link I sent you explains how to register
look on page 4
ok thats a great help, thanks.
You are most welcome
Your positive rating is always thanks enough.