Do Contractors Create a Sales Tax Nexus?
Transcript
Do contractors create a nexus? My name is Mansoor Ansari with Nexus Tax Defense. If your business requires contractors that get paid on a 1099 to work for you in another state, then you might have created a sales tax nexus. If that contract worker takes part in helping you build, and/or create a new market, then you most likely have a sales tax nexus. If you have contractors for the purposes of generating sales, deliveries, or taking orders for personal tangible property, or services, then they are required to register and collect sales tax. In addition, installing, servicing, or repairing personal tangible property in the state can also create a substantial nexus. Depending on the state, you have to look into the local rules and court decisions. If you have any questions, give us a call at (888) 577-1482. Thanks.
