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Economic Nexus Thresholds

Economic nexus thresholds determine when a non-resident Wyoming LLC must register for sales tax in a US state based on sales volume to that state's customers. Thresholds vary by state.

Answer

Economic nexus thresholds determine when an out-of-state seller must register for sales tax in a US state under the Wayfair v. South Dakota 2018 Supreme Court ruling. Thresholds typically activate at over $100,000 in sales or 200 transactions to that state's customers per year. California and Texas require higher thresholds (over $500,000). Most states require registration within 30 days of crossing the threshold. TaxJar and Avalara track and automate.

By Zawwad, Founder & CEO, WyomingLLC by Topslice LLC.

Last updated May 20, 2026

Common state thresholds

  • California: $500,000 sales
  • Texas: $500,000 sales
  • New York: $500,000 sales + 100 transactions
  • Florida: $100,000 sales
  • Illinois: $100,000 sales or 200 transactions
  • Pennsylvania: $100,000 sales
  • Ohio: $100,000 sales or 200 transactions
  • Georgia: $100,000 sales or 200 transactions
  • North Carolina: $100,000 sales or 200 transactions
  • Most other states: $100,000 sales or 200 transactions

Multi-state strategy

  1. Track sales by state monthly (TaxJar / Avalara automate)
  2. Register in any state where you cross threshold within 30 days
  3. Collect tax on customer purchases going forward
  4. Remit monthly or quarterly per state requirements
  5. Maintain registration even in low-volume months (most states require ongoing filing once registered)

Frequently asked questions

Do I register in every state?
Only states where you cross the economic nexus threshold (or have physical nexus).
Does threshold reset each year?
Most states use rolling 12-month or prior-calendar-year measurement. Once crossed, registration is required even if you fall below later.
What if I sell only $50K in a state?
You are below most state thresholds. No registration required in that state.
Does FBA change the threshold?
FBA inventory creates physical nexus regardless of sales volume. Register in warehouse states even with low sales there.

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