State and Local Tax Compliance: 5 Tips to Minimize Exposure and Maximize Revenue

Here are five critical tips to ensure your state and local tax processes are compliant:

1. Have someone review your business practices and legal entity structure for tax nexus.

Before they can collect taxes, marketers must determine their nexus — a connection with a state such as business activity or physical presence that subjects you to such tax laws. These rules vary state by state and can include criteria such as having your own delivery fleet to provide goods in a particular jurisdiction.