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This is a great question. Fortunately my LLC for my startup is based in a state that doesn't mandate charging sales tax for SaaS products. That being said, I do not go out my way to apply sales tax to those ordering in a state that does. I've never found a clear definition of what to do in these terms; at least, not without spending serious cash on a lawyer.

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Hope you don't mind me asking, which state are you based in? DE?

WI.

From what I gather, WI has Nexus and you should be collecting sales tax (depending on what you're providing). Do you mind me asking what you sell online?

You're right about nexus, but I sell a non-tangible SaaS product (no hard-ware, no CD download, etc). It's a grey area, but I think I'm okay. I'll verify at some point soon. It's still a side-thing w/ little to no revenue.

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