If your online business has nexus-creating activities in two or more states you probably know a thing or two about the Marketplace Fairness Act.
According to a recent article from CPA Practice Advisor, "The number of small businesses that are Internet-based has exploded the last few years as budding entrepreneurs create new business models opportunities that could only have been dreamed about in the not-so-distant past. But with opportunity comes sales tax obligations that may befuddle the uninformed." That said, more business activity could lead to nexus and tax complication.
"Sales tax is treated as a liability, not an expense. The business is collecting the sales tax is an agent of the state and must remit the money to the state shortly after collecting it. Then it reduces its cash and sales tax liability."
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