Should I charge tax, and how?

Whether or not you need to charge sales tax, and how much can seem like a daunting task to new business owners. Thankfully there are resources to help small business owners just like you sort through it.

Whether or not you should charge your customers taxes is based on the concept known as a nexus. A nexus means that your business has some “physical connection” to a state for your to be required to collect taxes. A physical connection may be employees (such as yourself), a brick-and-mortar store, a warehouse, or some kind of other assets located in the state.

GoDaddy Online Bookkeeping (formerly Outright) has a wealth of information for small business owners, including this handy resource: Sales Tax Resources for Online Sellers in Every State.

Once you know who and how much you should be taxing your customers, it’s easy to configure your NuggetWeb Merchant Shop to collect the required amount. Simply enable taxes in your Merchant Shop settings, and enter the amounts to collect for each state you have a nexus in. Even local sales taxes are a breeze to configure. Your checkout will calculate and display the taxes based on your customers’ shipping address.

You can find more information in our article “How to Determine your Sales Tax“.

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