Sales Tax Nexus Analyzer
Find out if your foreign-owned LLC has sales tax obligations in any US state.
Where is your US LLC formed?
What Is Sales Tax Nexus?
Sales tax nexus is a connection between your business and a state that requires you to collect and remit sales tax. There are two main types: physical nexus (having employees, inventory, or an office in a state) and economic nexus (exceeding a state's sales threshold).
Since the 2018 South Dakota v. Wayfair Supreme Court decision, states can require out-of-state sellers to collect sales tax once they pass economic thresholds. Most states set this at $100,000 in sales or 200 transactions per year.
Do Foreign LLCs Need to Worry About Sales Tax?
In most cases, no. If you are a foreign entrepreneur who formed a US LLC primarily for banking, payment processing, or business credibility, and you serve customers outside the US, you likely have no sales tax obligations in any state.
Sales tax only applies when you sell taxable goods or services to customers located in a US state where you have nexus. Most foreign-owned disregarded entities fall below all state thresholds.
This tool provides general guidance only and does not constitute legal or tax advice. Sales tax rules vary by state and change frequently. Consult a qualified tax professional for advice specific to your situation.
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