This video provides a concise overview of key sales tax considerations for businesses selling goods or services online across multiple states and jurisdictions. It covers the factors that establish a seller's obligation to collect and remit sales tax—commonly referred to as “nexus”—and highlights how these rules vary significantly from state to state. The video also explains the role of marketplace facilitators and payment processors in assisting with compliance, including the limitations of their services. Additionally, it outlines common pitfalls businesses encounter, such as miscalculating tax liabilities or overlooking other applicable state and local taxes.
Host: Evan Absher, Assistant Clinical Professor, UMKC School of Law.
Featured Presenter: Marcus McCarty, Adjunct Professor, UMKC School of Law.
Published: April 9, 2025.
Run Time: Approx. 12 minutes.
Grant support: This video was funded by a grant from the Ewing Marion Kauffman Foundation to UMKC as Grantee. The contents of this video are solely the responsibility of Grantee.
Resources list
(Last updated 4-9-2025)
THE FOLLOWING LIST OF SELECTED RESOURCES ON SOME LEGAL ISSUES FOR BUSINESS STARTUPS UNDER LAWS IN THE U.S. IS PROVIDED HERE SOLELY FOR GENERAL INFORMATION AND EDUCATIONAL PURPOSES AND NOT AS LEGAL ADVICE. ANYONE CONTEMPLATING AN ACTUAL BUSINESS VENTURE, TRANSACTION, OR OTHER ENDEAVOR SHOULD CONSIDER ENGAGING QUALIFIED LEGAL COUNSEL FOR RELATED LEGAL ADVICE. AT THE END OF THIS LIST IS SOME GENERAL INFORMATION FOR ENTREPRENEURS REGARDING WAYS TO ACCESS LEGAL COUNSEL.
Regarding “Nexus”:
- For a visual and textual guide on “Economic Nexus” thresholds by state, see Tax Foundation “Economic Nexus Treatment by State, 2024 at
https://taxfoundation.org/data/all/state/economic-nexus-by-state-2024/
Regarding Simplification/More Uniformity Efforts:
- For a source that offers guidance and links to member states' tax policy pages and includes some nexus information, see Streamlined Sales Tax Governing Board, Inc. “States and Businesses working together to create simpler, more uniform sales and use tax systems” at
https://www.streamlinedsalestax.org/
Regarding Access to Tax Websites of Various States:
- For a centralized list of state-by-state links to official tax websites, see Federation of Tax Administrators (FTA) – State Tax Agencies at https://taxadmin.org/fta-members/
Quick Guide:
- For an educational purposes “quick guide” related to matters discussed in the above video, see https://lei.center/images/resources/Sales_Tax_Compliance_Guide_for_Online_Entrepreneurs.pdf
SOME INFORMATION ON ACCESSING LEGAL COUNSEL
For some information on ways entrepreneurs can access legal services in connection with their business endeavors, see:
- Regarding Finding Lawyers generally, see https://eshiplaw.org/resources/resource-links/22-accessing-legal-services/56-lawyer-referral-networks
- For some information about seeking Affordable Legal Services, see https://eshiplaw.org/resources/resource-links/22-accessing-legal-services/54-affordable-legal-services
- For a state-by-state index of Clinics at U.S. Law Schools that provide legal services on various types of entrepreneurship and transactional matters, see https://eshiplaw.org/entrepreneurship-clinics-map
Watch the other Run the Traps video:
