US LLCs & Economic Nexus: Sales Tax for Non-Residents in 2026

Economic nexus is the primary trigger for sales tax collection for remote sellers, including US LLCs owned by non-residents. Post-2018 Wayfair ruling, states can require businesses without a physical presence to collect sales tax if they meet certain economic thresholds. This means your US LLC might need to collect sales tax in a state where you have no office or employees.

These thresholds vary significantly by state. Most states define economic nexus as either exceeding $100,000 in gross sales or completing 200 separate transactions into that state within a calendar year. Some states use only one criterion, others use both. You must track your sales per state meticulously.

Your first step is to identify where your US LLC has established economic nexus. Review your past 12 months of sales data, breaking it down by individual state. If your sales or transaction count into a specific state surpass its economic nexus threshold, you likely have a sales tax obligation there.

Consider all sales channels, including your own website, third-party platforms, and direct contracts. Even if a marketplace facilitator collects tax on some sales, your direct sales still contribute to your LLC's nexus calculation. Missing this distinction is a common error.

Once you determine where you have nexus, register for a sales tax permit in each of those states. This is a mandatory step before you begin collecting sales tax. Registering after collecting taxes can result in penalties.

Each state's registration process is unique, often requiring your EIN and business details. After registration, you must configure your e-commerce platform or accounting software to correctly calculate and charge sales tax based on the customer's location. Tax rates vary not only by state but also by county, city, and special districts.

The taxability of digital products and services is a growing area of complexity. Many states now tax digital goods (e.g., e-books, software downloads, streaming services) similarly to physical goods. The rules depend entirely on the specific state and the nature of the digital product.

For instance, Pennsylvania taxes most digital products, while Florida generally does not. Your US LLC needs to determine the taxability of each offering in every state where you have nexus. Misclassifying a digital product can lead to underpayment and future audits.

Marketplace facilitator laws simplify sales tax for sellers using platforms like Amazon, Etsy, or Shopify. In states with these laws, the marketplace itself is responsible for calculating, collecting, and remitting sales tax on sales made through its platform. This means you generally do not need to worry about those specific transactions.

However, your direct sales through your own website or other channels are still your US LLC's responsibility. Also, even if a marketplace collects sales tax for you, those sales still count towards your economic nexus thresholds in certain states. You must understand which sales channels fall under marketplace facilitator rules versus your direct obligations.

After collecting sales tax, your US LLC must remit it to the appropriate state tax authorities. Filing frequencies can be monthly, quarterly, or annually, depending on your sales volume in each state. Missing a filing deadline can incur penalties, typically a percentage of the unpaid tax.

Utilize sales tax automation software to streamline calculations, reporting, and filing. Services like TaxJar, Avalara, or Quaderno can save significant time and reduce errors, especially for multi-state obligations. These tools integrate with most e-commerce platforms and accounting systems.