I have a relative in another state who is selling a lot of my books. She is not a salaried employee, and we do not have her address listed as a location. Would she be considered an independent sales representative, establishing a physical presence, thus requiring that we charge sales tax for that state? Would we then need a sales license for that state too?

ANSWER

The BIDaWIZ Team's Answer:

Sales tax law varies by state and having an employee, independent contractor, or sales representative working in a different state, could create tax nexus. This means, you would be required to collect sales tax in those state. What states are involved exactly? Also, does the independent sales representative meet the guidelines for that position as defined by the IRS? The IRS has been cracking down on workers that have been misclassified as a contractor as opposed to an employee.