I have a question regarding US state taxes.
With the emergence of online shopping, Canadian businesses are increasingly selling to other countries including the USA.
I have done some basic research regarding Canadian businesses selling to US states. I have come across the South Dakota v. Wayfair court case and the term economic nexus.
From my understanding, each state has a sales/transaction threshold: e.g. $100,000 or 200 transactions.
Does this mean that as long as a Canadian business stays under the threshold there is no economic nexus and no need to collect and remit tax to that particular state?
I have done some further research and read if a Canadian business uses a marketplace (e.g. Amazon, Etsy and Ebay) these marketplaces may register, collect, and remit taxes on the business’ behalf. (May need to research this a little further). However, if you use a platform (e.g. Shopify) they may not.
Thoughts/Feedback would be appreciated