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How does TaxCloud know where I need to collect sales tax?

TaxCloud knows where you're required to file and remit sales tax based on three things:

1.  The business locations you entered into your account (and the states you selected to collect use tax, if any);

2. Your transaction volume in each state, and;

3. Your sales revenue in each state.

TaxCloud uses your locations to determine physical nexus and points 2 and 3, above to track your business' economic nexus. We will notify you via email if/ when your business approaches a state's threshold for economic nexus so you have time to obtain a state tax ID.