How do I handle taxes if I do fairs in a neighboring state?
Out-of-state fairs can trigger sales tax and possibly income tax obligations.
The Narrative
The Empathy
You want to expand to a nearby state, but the tax rules are unfamiliar. You are not sure what registration is required or how to file.
The Education
Selling in another state can create sales tax nexus, meaning you need to register and collect sales tax there. Income tax rules may also apply depending on your profit level and the state's requirements. Each state is different, so research is essential.
The Solution
Check the neighboring state's tax agency for temporary vendor rules, register if required, and track sales separately. Save reports from each event so filings are accurate. Planning ahead keeps expansion smooth and compliant.