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Do Amazon FBA nexus require that I charge sales tax to those states on my personal website?
Anonymous7 views3 answers
If I have an ecommerce company based in Dallas, Texas.
If I sell using Amazon FBA warehouse then I am creating a nexus in the states that I send inventory so for those Amazon FBA orders.
However, if along with Amazon FBA I have other orders that are coming directly through my website and are in no away associated with Amazon and the order is shipped from Dallas but the order is shipping to California where I did have Amazon inventory being stored (even though it wasn't used on this order) am I required to charge those customers sales tax?
Am I only required to pay sales tax on Amazon FBA orders when the origin state of the Amazon warehouse matches the destination state of the order and not on orders place through my own website where the origin of the inventory is Dallas?
I agree with my colleagues that you most likely need 2 entities in order to separate Amazon and non-Amazon orders since your entity will have nexus with CA. You may want to consider a series LLC since you have reduced formation costs that multiple LLCs. You should consult with and hire a business/tax transactional attorney to provide you with the advice that you need.
If you are seeking a legal opinion on which you can rely when conducting your business, you should retain counsel to review your specific situation and advise you.
Once you have nexus in a State, you are stuck. You will probably have to set up separate entities to isolate the Amazon vs. Non-Amazon business. You really need a good tax and business attorney to review the facts and help set-up the business.
Good luck!
Ron Cappuccio
