Nexus: A Four-Point Refresher

Nearly 16 years later, plenty of catalogers still struggle to find ways to avoid being subject to tax collection on sales to customers in various states. Here are four things to keep in mind in your efforts to avoid nexus.

1. Beware the Nexus Witch Hunt
Don’t overestimate the scope of the Quill decision. Many mistakenly believe the only way a catalog company can establish nexus is if it operates a facility in the state, such as a retail store, or if its employees enter the state to solicit sales or provide customer services. In reality, the comfort zone for direct marketers is quite tight, and there are numerous ways in which you inadvertently can fall into a nexus trap.