Resources Blog Nexus
by Sarah Craig February 28, 2025
State laws on economic nexus vary and it can be challenging to keep up with the various requirements for multi-state sellers. To help, we’ve consolidated everything you need to know about economic nexus in Rhode Island below.
With the South Dakota v. Wayfair Supreme Court ruling in favor of South Dakota, states are free to pursue sales tax from e-commerce businesses who have a “significant presence” in their state. Significant presence or “nexus” is defined as having a physical presence (ex: brick and mortar store, employee, or inventory in a fulfillment center like FBA) as well as a certain amount of economic activity, based upon number of transactions and/or revenue, in the state.
Most importantly, this means that if you pass a state’s economic threshold for total revenue and/or number of transactions in that state, you’re legally required to register, collect and remit sales tax for that state.
The first step is to register for a sales tax permit in Rhode Island . TaxJar offers these two options for registration support:
Here are the next steps after registering in Rhode Island
At TaxJar, we help more than 20,000 sellers manage their sales tax needs every month. We help your business save on submitting your returns with our automated filing service called AutoFile . Read more about how AutoFile can handle all of your returns in as many states as you’d like.
Yes — with TaxJar’s Economic Nexus Insights Dashboard , you can see where your business currently has nexus, where your business is approaching nexus, and recommended next steps on how to begin complying with sales tax in all states.
Proactive notifications let you know when you’re approaching or have reached thresholds, so you can stay in front of any changes to your nexus requirements.
Start a free, 30-day trial with TaxJar today to start monitoring your nexus thresholds in Rhode Island and other states.
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