Need Help Regarding Sales Tax Registration – Selling in the USA from the UK

[MoeedEclete]

Hi everyone,

I hope you're doing well.

I’m based in the UK and currently running an online business through Shopify, selling products to customers in the USA. I recently received a message from Shopify stating that I may be liable to collect sales tax in the U.S.

However, I don’t have any U.S.-based documents — no LLC, no U.S. identity, and no local presence. When I try to register as a sales tax vendor in a U.S. state, the system asks for legal documentation like an LLC or other U.S.-based credentials, which I do not have.

Can someone please help me understand:

1. Is sales tax registration dependent on a certain sales threshold (economic nexus)?

2. If I haven’t crossed that threshold yet, am I still required to register and collect taxes?

3. What are the risks if I delay registration — could it result in penalties or fines?

I would really appreciate any guidance or shared experiences on this. I’m trying to ensure I stay compliant, but without a U.S. entity, it’s becoming confusing.

Thanks in advance for your support!

[JakeJ]

Here's what to do:

1. Review your sales: Take a look at where your sales are coming from and check if you've crossed any economic nexus thresholds in U.S. states. This will help you figure out exactly where you might need to register for sales tax.

2. Assist with registration: If you find that you do need to register, I can guide you through the process. Some states don’t require an LLC, so you can  register as a foreign seller or assist in getting the necessary U.S. Tax ID (EIN or TIN), so you’re all set to collect sales tax.

3. Stay compliant: Ensure that you’re in good standing with the U.S. tax rules, helping you avoid any penalties or back taxes down the line.

Let me know if you understood, or if you have specific states in mind that you'd like to focus on

[MoeedEclete]

Hi Jake,

I hope you're doing well.

Could you please let me know how I can check whether my business has crossed any economic nexus thresholds in U.S. states? Also, I would really appreciate your assistance in helping me register as a sales tax vendor in the U.S.

Thank you so much for your support—I look forward to your guidance.