Plain-language notes on U.S. tax deadlines, IRS letters, cross-border reporting and running a small business, written by the CPAs who handle these questions every day.
When a Chinese factory places goods in Wayfair's CastleGate warehouses, it has physical presence in each inventory state, which can bring sales tax registration and franchise tax, and states generally ignore the U.S.-China treaty. Federal tax turns on ECI: produced inventory is generally sourced where it's made, but a U.S. office, staff or agents can change that.
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Walmart collects sales tax on its orders as a marketplace facilitator, but stock in a WFS warehouse is property in that state and can create physical presence: off-platform sales are yours to tax, some states require registration, and state income tax, Texas franchise tax, California's $800 and Washington B&O aren't the platform's job. States don't follow tax treaties.
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Articles are general information, not tax or legal advice for your specific situation.
