Roseville Accountant to Help with State Tax Nexus Studies
Contact the Roseville accountants at Cook CPA Group for professional services focusing on state tax nexus studies and preparations for your business.
The amount of business contact that a business has within a state is known as their nexus. It’s important when determining whether or not a business should register with a state taxing authority so that they can pay sales taxes in that state. Nexus is quantified by the amount of personnel, physical representation, and affiliates that the business has within a certain state. The criteria for what determines nexus vary by state. Businesses that would like to know whether their business has nexus in California can use the help of a state tax nexus study accountant.
Roseville accounting firm Cook CPA Group is eager to help businesses perform state tax nexus studies. The Roseville state tax nexus study accountants from Cook CPA Group are prepared to assist businesses with state sales taxes. Contact them soon to speak about your state sales taxes and other tax preparation needs. Call (916) 432-2218.
State Tax Nexus Studies for Roseville Businesses
Nexus is a measure of the business connections that a certain business has within a certain jurisdiction, such as a state, country, or municipality. Business connections may be physical location, employees and personnel, presence at trade shows, or business affiliates within the jurisdiction. If a business has nexus, they will be subject to that jurisdiction’s tax laws.
Failing to register with tax authorities in that jurisdiction and comply with its tax laws for too long can result in tax liabilities. Even businesses that are remote are required to register with tax authorities and comply with tax law if they meet nexus criteria, starting on the day that they cross the economic threshold.
Roseville, CA businesses that would like to know if they have nexus in California can use the help of a state tax nexus accountant. An experienced accountant can perform a state tax nexus study, which can survey the business’s activity within a certain state and then determine whether or not nexus is established. California’s tax law regarding nexus changed in 2019 and included an increase in the threshold of sales that meet nexus requirements. Businesses that previously had nexus may not have it any longer and may not need to pay sales taxes in California anymore. To learn more about whether your business has nexus in light of California’s new nexus laws, get in touch with an experienced state tax nexus study accountant.
Nexus in California
Economic nexus criteria vary by state. In California, economic nexus is triggered only by sales of tangible personal property (things that can be touched and used in everyday life, such as clothing, jewelry, furniture, vehicles, and equipment); other states have nexus for digital products as well. When evaluating whether or not a business has nexus, only the sales from the preceding calendar year are taken into account. The criteria for having nexus in California are the following.
Physical Locations of Business
Having a certain number of physical places that are involved in a company’s business transactions can meet the criteria for nexus in California. The physical locations may be an office, retail space, warehouse, storage space, a place of distribution, or any other place that allows the business to conduct operations.
Personnel That Live in the Jurisdiction
If a certain amount of people that work for a company live in a certain jurisdiction, they may meet the criteria for nexus. Salespersons, contractors, representatives, and personnel that assemble, install, deliver, or sell the tangible personal property sold by the company are taken into account.
Nexus can also be established through affiliate nexus (also known as “click-through” nexus), which is the number of affiliates that a business has through referrals. These affiliates may either directly or indirectly refer potential customers to the company’s web page through the use of digital methods. If a company’s affiliates make more than $10,000 in sales and make more than $1 million in sales in the preceding 12 months, the affiliate must register with tax authorities and comply with tax law.
Presence at Trade Shows
Companies must register with California tax authorities if they have a physical presence at trade shows for more than 15 days within one calendar year.
Combined Sales within The State of California
A company’s combined sales within the state of California can determine whether they have nexus within California. Combined sales of tangible personal property that exceed $500,000 within the preceding calendar year meet California’s threshold for nexus. The threshold of sales of personal property used to be $100,000 and more than 200 transactions; the minimum amount of sales was raised to $500,000 and the number of minimum transactions was recently eliminated.
What to Do if Your Business Has Nexus in Roseville, CA
If an accountant performs a state tax nexus study and determines that your business has nexus in Roseville, you should register for a sales tax permit as soon as possible. You can do so by visiting the California Department of Tax and Fee Administration’s website. Applying for a permit is free. However, some companies may have to pay a security deposit if they have too many unpaid taxes. After they are registered, companies should continue working with an accountant to make sure that their taxes are paid and that they are in compliance with state tax laws.
CPAs Available for State Tax Nexus Studies in Roseville
Speak with a knowledgeable Roseville state tax nexus study accountant from Cook CPA Group soon if you are concerned about whether you should be compliant with state tax law. Cook CPA Group’s accounting team can assist you with state tax nexus studies as well as other forms of tax preparation.