Understanding taxes

- Taxes aren't simple.…Some countries have a federal tax you pay,…some states have a tax on top of that,…some counties have a tax on top of that,…and some cities have a tax on top of that.…That's a lot of taxes.…Let me start by saying I am not a tax expert…and you should get the necessary information…from a tax professional.…What I can do is give you an idea…of how taxes work in general so you can expect…what taxes you'll have to set up.…The general rule is that if you have Nexus in a place,…you have to pay those taxes.…

Nexus means having physical presence in a state,…like a warehouse or storefront.…So if I have a store in Colorado and a warehouse in Utah…I have to collect both Colorado and Utah taxes.…Now, that doesn't mean that with every purchase…I have to collect both Colorado and Utah taxes.…You usually only collect one set of taxes.…So if my customer is in Colorado,…I'll pay Colorado taxes.…If my customer is in Utah,…I'll collect Utah taxes.…If the customer is in some other state,…I don't collect any state taxes.…