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.
New York exempts clothing and footwear under $110 an item from its 4% state tax, with local tax depending on the locality; Massachusetts exempts the first $175 of each item; New Jersey, Pennsylvania and Minnesota generally exempt clothing but tax accessories, fur and sport or protective gear. Marketplaces handle their orders; your own store is on you.
Around early September 2026, costconext.com began redirecting to a Costco customer service page: storefronts are no longer available, and returns and warranties go to the brands. Brands were generally the seller, so they wind down returns and square away sales tax and 1099-Ks; staying with Costco members means becoming a supplier, with very different tax rules.
When you sell to a retailer like Overstock and ship straight to its customer, the retailer collects sales tax from the customer and your sale is wholesale, exempt only with a valid resale certificate. If you have nexus in the customer's state and no certificate, that state can tax your wholesale price. Register where your inventory sits; North Carolina requires wholesalers to register before doing business.
A designer who sells furniture to a client makes a retail sale, collects sales tax, and buys tax-free with Form E-595E. In North Carolina, design fees sold with goods are exempt only when separately stated. Capital-improvement contractors pay tax on materials and put no sales tax on the invoice. Houzz Pro 1099-Ks follow the $20,000 and 200 federal threshold.
Trade programs like Perigold Trade give designers 10% or more off, but a discount isn't a tax exemption. Designers who resell furniture to clients are retailers in most states: register, buy for resale with a certificate, then charge the client. Design fees are taxed very differently in New York, California and North Carolina.
On Lowe's Marketplace you are the seller: Lowe's collects sales tax, you get a 1099-K, and your U.S. warehouse states bring tax obligations. As a Lowe's vendor you sell wholesale: no sales tax on a resale certificate and no 1099-K, but EDI, deductions and allowances to manage. Setup and bookkeeping differ too.
Newegg collects sales tax on Newegg Business platform orders, and buyers apply to Newegg for exemptions with Newegg Inc named as seller. Off-platform wholesale orders are yours: check each state's nexus and collect resale certificates; issuing your own to suppliers generally requires registration. B2B orders pay 25 days after delivery.
A samsclub.com drop ship vendor sells goods to Sam's Club and ships them from its own warehouse to members. Sam's Club collects sales tax and you don't, on a resale certificate, but your warehouse state brings income tax, franchise tax and possibly wholesaler registration. Returns, deductions and freight follow the agreement.
On Walmart Marketplace you are the seller; the platform collects sales tax and issues a 1099-K. Sam's Club has no open third-party marketplace: you supply Sam's Club, which collects sales tax and issues no 1099-K, and you book wholesale invoices and deductions. Doing both means books by channel.
On Target Plus you are the seller: Target collects sales tax and payouts over $20,000 and 200 transactions bring a 1099-K. As a Target vendor you are a wholesaler: collect Target's resale certificate instead of tax, generally get no 1099, and recognize revenue on delivery terms. Doing both means keeping channels separate in the books.
SHEIN's U.S. seller site recruits U.S. brands and sellers: formation documents, a W-9 or W-8BEN-E, a bank letter and KYC with the last 4 of an SSN. No monthly fee, a fixed category commission, 48-hour shipping, 7-business-day delivery or $1 per late order, and Monday settlements. SHEIN collects sales tax; you reconcile the 1099-K.
Shopify Tax calculates and collects sales tax only in the states you turn on and flags possible nexus; it doesn't register you, and automated filing is closed to new enrollment. The first $100,000 is free, then 0.35% per transaction, capped at $0.99 per order. Shop channel orders and early-access managed tax for some new stores are the exceptions.
