So I’ve decided to pull all inventory from Amazon FBA, not due to sales tax nexus but Income Tax nexus concerns. We have the ability to do Seller Fullfilled Prime, so beyond the fact that I need to stock more inventory in our warehouse, it seems to make the most sense to me. We still get the Prime Badge, and we already ship 100+ packages per day.
I don’t mind filing sales tax in all states that require it, but creating income tax nexus in all other states is just a road I don’t want to go down. States are going to go after their sales tax revenue, and then Income Tax revenue is just a step behind it. Our fear is that as soon as you register for sales tax AND have inventory in that state, they are going to want income tax as well.
Good luck to everyone that deals with this, it is a huge headache. I’ve already spent tens of thousands of dollars on tax professions and attorneys figuring it out, and there is just so much uncertainty that it could blow in any direction.