check-my-sales-tax-nexus

Check My Sales Tax Nexus

State-by-state economic-nexus check. I total revenue and transactions per US state for the period, compare against each state's threshold, pinpoint the crossing month, and flag physical-nexus triggers (employees, offices, inventory) regardless of revenue. Exposure is ranked highest-dollar first; the three closest pre-crossing states show up as early warnings. I never register and I never remit.

When to use

• "where do we owe sales tax" / "nexus check" / "sales-tax exposure by state".
• Quarterly - end of fiscal quarter.
• Company cross round-number revenue mark ($500K, $1M, $5M) or add employees in new state.

Connections I need

I run external work through Composio. Before this skill runs I check that the categories below are linked. Missing → I name the category, ask you to connect it from the Integrations tab, stop.

• Stripe (billing) — required to pull charges with billing / shipping state for revenue-by-state aggregation. Required if Stripe is your primary contract source.
• QuickBooks Online or Xero (accounting) — pulls invoice / customer state tags as a fallback or supplement to Stripe. Optional.

If none of the required categories are connected I stop and ask you to connect Stripe first, since most startups invoice through it.

Information I need

I read your bookkeeping context first. For every required field that's missing I ask ONE plain-language question (best modality: connected app > file drop > URL > paste) and wait.

• Your company's home state — Required. Why: physical-nexus baseline; you owe sales tax there regardless of revenue. If missing I ask: "What state is the company headquartered or incorporated in?"
• How you bill customers and where contracts live — Required. Why: drives the source I use for revenue-by-state. If missing I ask: "How do you invoice customers, mostly through Stripe, through QuickBooks or Xero, or somewhere else?"
• States you already collect or file sales tax in — Optional. Why: lets me mark already-registered states as "no action" instead of "new exposure." If missing I ask: "Are you already registered to collect sales tax anywhere? If you don't have it I keep going and flag every crossing as new."
• Where your employees physically work — Optional. Why: any W-2 employee in a state creates physical nexus regardless of revenue. If missing I ask: "Do you have employees working in states besides the headquarters state? If you don't have it I note it as TBD and call out physical-nexus checks for the user to confirm."

Steps

1. Read context. Load context/bookkeeping-context.md, config/context-ledger.json, config/chart-of-accounts.json. Required ledger: universal.company.state, domains.revenue.contractSource, domains.tax.stateFilingFootprint. SaaS taxability vary by state - compute exposure regardless of taxability posture.

2. Determine period. Use user {YYYY-QN} if given; else most recent completed fiscal quarter. Also report trailing 12-month rolling view (most state thresholds measure this).

3. Pull revenue by ship-to state. Source priority: a. Stripe via Composio. composio search billing → discover Stripe slug → pull charges in period with customer billing / shipping state. SaaS use billing address; shipped goods use ship-to. Fall back to card country + postal code if address missing. b. Invoices (CSV / paste). User provides invoice-level data with state, amount, date, customer id. c. Accounting system via Composio. QuickBooks Online / Xero customer list with state tags. None available → stop, ask for source. Never invent state attributions.

4. Aggregate per state. Sum revenue; count distinct transactions (thresholds use "separate transactions" - multi-line invoice = one; monthly subscription = 12 per year per customer).

5. Compare against economic-nexus thresholds. Use reference table (re-check current DOR guidance if cached date on ledger > 12 months old):

   State	Threshold (OR unless noted)
   CA	$500K revenue (no transaction count)
   NY	$500K revenue AND 100 transactions (both)
   TX	$500K revenue (no transaction count)
   FL	$100K revenue (no transaction count)
   IL	$100K OR 200 transactions
   MA	$100K (no transaction count)
   WA	$100K (no transaction count)
   CO	$100K (no transaction count)
   GA	$100K OR 200 transactions
   NC	$100K OR 200 transactions
   PA	$100K (no transaction count)
   OH	$100K OR 200 transactions
   VA	$100K OR 200 transactions
   MI	$100K OR 200 transactions
   NJ	$100K OR 200 transactions
   Default (all others)	$100K OR 200 transactions

   "OR" states: cross either = nexus. "AND" states (NY): must cross both. Most measure over trailing 12 months or prior calendar year - note which per row.

6. Crossing date. For each crossed state, walk cumulative revenue + transactions month by month. Pinpoint crossing month. Most states give 30–60 day grace period to register.

7. Physical-nexus flags. Regardless of economic threshold:

   • Employees working in state (per domains.payroll / HR system - ask if not captured). Any W-2 employee = physical nexus.
   • Offices / leased space.
   • Inventory (including FBA warehouses).
   • Contractors: generally do NOT create nexus (1099s don't count), but some states (e.g., TX) take aggressive positions - flag, don't auto-conclude. Physical nexus require registration regardless of revenue.

8. Rank by exposure. Sort crossed states by cumulative revenue (descending). Each row: state; revenue in period + rolling 12m; transactions in period + rolling 12m; threshold applied; date crossed; physical-nexus flag; cumulative exposure; next action ("Register via Avalara / TaxJar / direct DOR portal" / "Engage SALT advisor" / "Already registered per stateFilingFootprint" / "Monitor - below").

9. Write compliance/sales-tax/{YYYY-QN}.md. Atomic write. Structure:

   • Summary - states crossed, physical-nexus count, total exposed revenue, already-registered vs. new crossings.
   • Crossed states - table ranked by exposure.
   • Physical-nexus-only - states with physical presence but below economic threshold.
   • Not crossed - one-liner showing 3 closest to threshold (early warning).
   • Taxability note - remind user SaaS taxability varies by state; crossing threshold ≠ every sale taxable. Need DOR guidance on specific product - judgment call for SALT advisor.
   • Filing note - "Prep only. Registration via Avalara / TaxJar / direct state portals. Remittance / filing is on you."

10. Append to outputs.json. Row: {type: "sales-tax-nexus", title: "Sales-tax nexus {YYYY-QN}", summary, path, status: "draft", domain: "compliance"}. Read-merge-write.

11. Summarize to user. One paragraph: # states newly crossed, total exposure, top-3 by risk, physical-nexus flags, next move per crossed state. Never register, never remit.

Outputs

• compliance/sales-tax/{YYYY-QN}.md (indexed as sales-tax-nexus)