tax

# Tax Tax obligations are created by facts — where you sell, where people work, what you sell — not by decisions anyone consciously makes. The characteristic failure is discovering an obligation years after it began, with penalties and interest attached. **This structures the question and tells you what to ask. Tax is technical, jurisdiction-specific, and changes frequently. Positions on anything material belong with a qualified tax adviser or CPA, not a checklist.** ## Nexus: the thing that creates obligations quietly Nexus is the connection that gives a jurisdiction the right to tax you. It is established by activities most companies do not think of as tax events: - **An employee working somewhere.** One remote hire in a new state commonly creates payroll registration, income tax withholding, and often corporate income tax nexus. - **Economic activity without physical presence.** Since *Wayfair*, US states set sales-tax nexus on revenue or transaction thresholds — a few hundred thousand dollars, or a couple of hundred transactions, with the numbers differing by state. - **Inventory held somewhere**, including in a third-party fulfillment warehouse you never visit. - **Contractors, or attending trade shows**, in some jurisdictions. Review nexus whenever you hire in a new location, cross a revenue threshold, or change how you distribute. Registering late costs more than registering early, and voluntary disclosure programs exist precisely because this is so common....