In ShipHero, we distribute inventory to various states to be closer to customers. ShipHero typically stages inventory in Nevada, Texas, Florida, and Pennsylvania. This is called Load Balancing.
However, if you have a different agreement with ShipHero, it's important to refer to it. Please get in touch with your CSM or reach out to our support team HERE.
What is Nexus?
- Many states in the US have implemented economic nexus laws, which establish nexus based on sales revenue, transaction volume, or a combination of both, rather than physical presence. This means that even if a business has no stock or physical presence in a state, it may still be subject to sales tax collection and remittance obligations if it meets the state's economic nexus thresholds.
- Avalara's state-by-state guide is useful for understanding each state's specific economic nexus laws. However, it is important to note that the information in the guide may need to be updated or cover only some nuance of the state laws. It is still unclear whether having inventory stored and distributed by a third-party logistics provider like ShipHero would be considered nexus in cases where you don’t have economic nexus.
TIP: ShipHero encourages you to consult your tax advisor if you have questions about whether Nexus Laws will impact you.
Each state may have its own rules regarding inventory storage and third-party logistics providers. To be sure about your tax obligations, it is recommended to consult with a tax attorney or accountant familiar with the specific state laws to ensure compliance.