Do I have a "physical presence" if I do everything at home?

Jett_Wang
New Member
3 0 1

I "run" my ecommerce store in my home in NY entirely by myself as a sole proprietor. Does that count as a "physical presence" that I need to register a sales tax nexus for?

I'm getting very confused :(

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Nick
Community Moderator
Community Moderator
4122 397 839

Hi Jett, 

Nick here from Shopify. 

Good question as taxes can be confusing even on the best of days. The first thing I always suggest is to reach out to your local tax office or an accountant while getting this set up on your Shopify store. Your local tax office or a professional accountant would know better than anyone and especially for your area. 

I did find a third party document which goes through the general requirements for New York Nexus sales tax which you can find here. Shopify also has a blog post explaining the Economic Nexus sales tax which you can see here. Another helpful document I found on what Nexus is and how it affects your small business can be found here

I hope that helps and gives you some direction on some next steps as well as some information. 

All the best, Nick

Nick | Community Moderator @ Shopify 
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Jett_Wang
New Member
3 0 1

Thank you Nick! I'll do more research into it :)

lobo_Accounting
New Member
1 0 1

what triggers Nexus in New York is 

1.Opening an office in New York

2.Storing inventory in a warehouse in New York

3.Having remote employees located in New York

As quoted from the NYS website 

"If you operate a trade or business from your home, you have the same responsibilities as any other vendor making the same types of taxable sales in New York State. Whether you run your business from a store or your home, or whether you work full time or part time is not what determines your requirement to be registered for sales tax. Instead, whether or not you are required to register is based on what types of items you sell, or what kind of services you provide. If the items or services that you sell are subject to sales tax, you are required to register. This also includes items that you sell on a regular basis through online auction or other Web sites."

The answer is yes 

Please contact me if you need more help 

Adam@loboaccounting.com

please also visit my website 

https://loboaccounting.com/