Click-Thru Tax Nexus?

Jackson Wyoming SEO Forums Affiliate Networks Click-Thru Tax Nexus?

This topic contains 2 replies, has 2 voices, and was last updated by  dzemens 7 months ago.

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  • #708

    dzemens
    Participant

    So I’m investigating something here and apparently unable to partner with Backcountry.com due to some tax laws in Michigan (where I’m located). This law dictates the thresholds above which the seller is required to collect MI Sales & Use tax on items sold to MI residents) which are fairly low thresholds, all things considered.

    Most of my partners I’ve been with since before that law was passed (Oct 2015) so I’m wondering if they just haven’t figured it out yet, and in that case, I may eventually be terminated as an affiliate for those sellers, too?

    Has anyone else had to deal with something similar? I suspect there’s a way to Incorporate in a state that doesn’t have such a requirement, and then update my profile to use the LLC’s TIN instead of my SSN for income, etc.

    #712

    Mike Hardaker
    Keymaster

    The nexus stuff is tough. I went though this when I had the business address listed in California. Either had to move the business or wasn’t able to work with some of the bigger merchants. I would guess as you mentioned incorporating in another state would allow you to earn commission through Backcountry.com

    However, are sure Backountry.com can’t work in Michigan? Looking at some of the other programs it doesn’t mention your state:

    https://www.avantlink.com/programs/10270

    https://www.avantlink.com/programs/10086

    https://www.avantlink.com/programs/10060/terms – BC terms

    Let us know what you find. Also I would contact Avantlink Support and your contact at Backcountry.com

    #714

    dzemens
    Participant

    I am not sure, yet. I opened the inquiry with Backcountry because I was hoping to have my application (previously denied, and I never followed up as to why) reconsidered. This was in 2014, so, before the MI law was passed in January 2015.

    Long story short, about 2:30 this afternoon I received the invite email from three BC programs: Backcountry, CompetitiveCyclist, and SteepAndCheap.

    Of course, I was pretty happy about that!

    About 15 minutes later I got another email from someone else with the agency who handles their stuff (she was CC’d on the original reply), who informed me:

    We are not able to partner with affiliates in Michigan due to nexus. Are you still currently located in MI?

    Before I did anything (accept the invite to their affiliate program, reply to this email, etc.) I started a-Googling, and here we are 🙂 I’ve read elsewhere that it’s not just the incorporation (or lack thereof), it’s the fact that I live here, and no matter where the business might be incorporated, I operate it from Michigan.

    As for the other program terms, I did look at a few (including Evo, with whom I have a relationship). It’s possible their terms haven’t been updated recently, IDK. Moosejaw’s terms list some things I read elsewhere as actions which could/would create nexus and they simply require that you agree not to do those things. They also say that they won’t pay you referral commission on sales that ship to an address in your state.

    OTOH Backcountry’s terms say they won’t work with any “Affiliate who maintains a physical presence which requires the Affiliate to file tax returns in any state that has passed a law under which an affiliate could create nexus for Backcountry.com” (emphasis added). So the way I interpret that is “We don’t want to risk the fact that you might cost us tens of thousands of dollars in tax obligations”.

    I’m going to stew on this a bit…

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