Collecting US Sales Taxes from Canada

April22
New Member
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I would appreciate any useful insights on this topic . I am just starting out as a drop shipper fulfilling  orders from a ware house in Los Angele, California. My understanding from my research is that my business will be considered as having an economic nexus and I have to collect sales taxes, but only if my business meets the economic threshold of $500, 000.  Just to confirm that my understanding is accurate on this issue? 

Flowing from that, if the answer is in the affirmative why is Shopify requiring I set up sales taxes when I indicate a USA address as the location to fulfil  orders? Will sales taxes be collected automatically this way? How do you suggest I go about it? 

Thanks in advance for your insight and response. 

 

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