AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
You owe a state sales tax registration when you have "nexus" there, and for online sellers that is now mostly economic nexus: crossing a sales threshold into the state, even with no office or warehouse there. California counts sales of tangible goods delivered into the state above $500,000 in the current or preceding calendar year; Texas uses $500,000 of Texas revenue over the preceding twelve months. Each state sets its own test, so you check state by state.
What nexus means for a seller of Nigerian goods
Nexus is the connection with a state that obliges you to register, collect its sales or use tax from buyers and file returns. There are two ways to get it. Physical nexus comes from being present: an office, staff, a warehouse or stock held in the state. Economic nexus comes from selling enough into the state, whether or not you have ever set foot there. Since the Supreme Court's Wayfair ruling, states have written their own economic tests, and California's tax department still files its guidance for out-of-state sellers under that name.
For a shop selling ankara fabric, shea butter, spices or art from a home in Maryland, this matters in two places. Your home state usually catches you on physical presence from day one. Every other state catches you only when your sales into it pass its threshold.
Physical nexus can also arise in ways sellers miss. Stock placed in a fulfilment warehouse in another state, a staff member or contractor working from that state, or a pop-up stall at a festival there can each count as presence, depending on the state's rules. If your stock moves around the country, ask your fulfilment provider which states it is held in and check each one.
Two state tests, side by side
These are the tests as the two state tax departments publish them, checked in October 2026. Other states differ in amount, in the period measured and in whether a count of transactions also applies.
| State | Threshold | Period measured | What the page adds |
|---|---|---|---|
| California (CDTFA) | Combined sales of tangible personal property for delivery into California above $500,000, including related persons | Preceding or current calendar year | Applies to sales from 1 April 2019; based on dollar sales, no transaction count stated |
| Texas (Comptroller, page modified 18 May 2026) | $500,000 in total Texas revenue, described as a safe harbour | Preceding twelve calendar months | Register and start collecting no later than the first day of the fourth month after the month you cross it |
Read the threshold literally. California adds the sales of related persons, so two linked companies run by the same family can cross it together. Texas measures a rolling twelve months, so you test it every month, not once a year.
Marketplace sales
Many sellers of Nigerian products reach buyers through Etsy, Amazon, eBay or similar platforms. Most states make the marketplace facilitator collect tax on sales it processes. Texas says a remote seller who sells only through a marketplace provider that certifies it collects and remits on the seller's behalf does not need a Texas permit, but must still keep records of those sales for at least four years. The single local use tax rate Texas offers remote sellers (1.75% on the Comptroller's page) is not available to marketplace providers collecting for sellers.
Whether marketplace sales count towards your own threshold differs by state. Some count them, some exclude them. If you sell both through a marketplace and through your own website, find that line on each state's page before you decide you are under the limit.
A worked example
Example only. Funmi runs a Houston-based online store for Nigerian fabrics and beads. In the twelve months to September her sales were:
| Destination | Own website | Marketplace | What to check |
|---|---|---|---|
| Texas | $140,000 | $60,000 | Home state: physical presence, so registered already |
| California | $310,000 | $220,000 | Total $530,000, above $500,000 if marketplace sales count |
| Georgia | $45,000 | $10,000 | Check Georgia's own threshold and transaction rule |
| Other states | $90,000 spread | $40,000 spread | Usually small per state; track monthly |
In California, $310,000 plus $220,000 is $530,000. If California's rule counts marketplace sales towards her threshold, she must register even though the marketplace already collects on its share. She would then collect on her own website sales only. In Texas she is registered anyway because she operates there.
Steps for a growing seller
- Report sales by destination state every month, split into own-site and marketplace.
- Keep a short table of each state's threshold, period and marketplace rule, with the date you checked the state page.
- Register before the date the state sets after you cross, not after the first return is due.
- Set your checkout to charge tax only where you are registered, at the destination rate the state requires.
- Keep the marketplace statements: they are your evidence that the platform collected tax.
- Have a US tax adviser review once you sell into many states. This page is information, not tax advice.
For the registration itself, see our guide to registering for state sales tax, and for how tax applies to imported stock, US sales tax on goods imported from Nigeria.
Where Pryme fits
Sales tax is a US filing matter; Pryme does not calculate or file it. Where Pryme helps is the money behind the stock: a Pryme Business Account holds USD and NGN with local details for each, so you can pay Nigerian suppliers in naira and keep a clean record of each purchase. Outside Nigeria, Pryme's activities are carried out through regulated partners.
Questions people ask
What is economic nexus for sales tax?
It is a duty to register and collect a state's sales tax because your sales into that state pass its threshold, even if you have no office, staff or stock there.
What is California's sales tax threshold for online sellers?
CDTFA says out-of-state retailers must register when combined sales of tangible goods delivered into California, including related persons, exceed $500,000 in the preceding or current calendar year.
What is the Texas remote seller threshold?
The Texas Comptroller sets a $500,000 safe harbour measured over the preceding twelve calendar months. Above it, you must hold a permit and start collecting by the first day of the fourth month after you cross.
If I only sell on Etsy or Amazon, do I need to register?
Often not, where the marketplace collects for you. Texas, for example, says marketplace-only sellers need no permit if the provider certifies it collects, but you must keep records for four years. Check each state.
Sources
- CDTFA: Tax guide for out-of-state retailers (Wayfair), California economic nexus · accessed Oct 2026
- Texas Comptroller: Remote sellers (last modified 18 May 2026) · accessed Oct 2026
- IRS: Understanding your Form 1099-K (reviewed 28 Jun 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.