How to Register in a State Where You Haven't Met Nexus
Updated 2 months ago
Sales tax nexus thresholds determine when a business is legally required to register and collect sales tax in a given state. However, there are valid situations where you may choose to register voluntarily — even before meeting the economic nexus threshold. Common reasons include:
Obtaining a resale certificate from a state where you have no current sales tax obligation
Proactively establishing compliance ahead of anticipated business growth in a state
Fulfilling a business partner or vendor requirement that mandates a state tax registration
Kintsugi supports voluntary registration through a dedicated workflow available in the Monitoring section of your dashboard.
Where to Find This Feature
Navigation Path: Log in > Monitoring Tab › Not Exposed Section › Register Button |
Before You Begin
Please take note of the following before initiating a voluntary registration:
The state must appear in the Not Exposed section of the Monitoring tab. States only appear here if Kintsugi has some existing activity on record for that jurisdiction (e.g., transactions below the nexus threshold, physical presence flags, etc.).
If a state has zero transactions or activity in Kintsugi, it will not appear in the Monitoring view at all. In that case, please contact your Kintsugi account team for assistance.
If you are using a read-only integration, please read the important note below before proceeding, as an additional step is required on your integration platform.
Step-by-Step Instructions
Step 1: Navigate to Monitoring
From your Kintsugi dashboard, click Monitoring tab in the left-hand navigation menu.
Step 2: Open the Not Exposed Tab
Inside the Monitoring section, select the Not Exposed secrtion. This section lists all states where Kintsugi has detected some activity, but where your business has not yet met the economic nexus threshold and is therefore not yet required to register.
Step 3: Click Register Button
Find and click the Register button. A registration request dialog will appear.
Step 4: Select “Setup Later” When Prompted for Kintsugi Mail
Select Setup Later when prompted. This allows you to submit your voluntary registration request without credentials you don’t yet have. The Kintsugi Tax Operations team will handle the state registration process and follow up once your account is established.
Step 5: Fill the Information & Acknowledge the Voluntary Registration Notice
Fill the required fields and acknowledge: “I understand that registration in this jurisdiction may not be necessary since I haven’t met nexus here.” Check the acknowledgment checkbox to confirm that you are proceeding voluntarily.
Step 6: Submit Your Request
Review your registration details and click Submit. Your voluntary registration request has now been sent to the Kintsugi Tax Operations team for processing. You will be notified when registration is complete and your state tax portal credentials are available.
⚠️ Important: Read-Only Integrations If your Kintsugi account uses a read-only integration (such as a read-only API connection or an integration without write permissions to your eCommerce or billing platform), completing the voluntary registration steps above is not sufficient on its own. You must also enable sales tax collection directly at the integration level — within your connected platform (e.g., Shopify, QuickBooks, Amazon, etc.) — to ensure that tax is actually calculated and collected on transactions in the newly registered state. Failing to enable this at the integration level means tax will not be collected from your customers, even after your registration is active in Kintsugi. Contact your Kintsugi account team if you need guidance. |
What Happens Next
Once you submit your voluntary registration request:
The Kintsugi Tax Operations team will receive and begin processing your registration with the state tax authority.
Processing times vary by state but you will be notified when your registration is active and credentials are available.
Once registered, Kintsugi will begin tracking your filing obligations in that state on your dashboard.
If you are using a read-only integration, remember to also enable sales tax collection at the integration level (see the important note above).
Frequently Asked Questions
Why would I register voluntarily if I’m not required to?
The most common reason is to obtain a resale certificate, which many vendors and suppliers require before selling goods to you tax-free. Other reasons include proactive compliance planning or meeting contractual requirements with business partners.
What if the state I want to register in doesn’t appear in the Not Exposed tab?
If a state doesn’t appear in the Not Exposed tab, Kintsugi may have no activity record for that jurisdiction at all. Please reach out to your Kintsugi account team — they can assist with initiating a registration through internal tools.
Can I use Import Registration for a fresh voluntary registration?
No. Import Registration is designed for situations where you have already registered in a state outside of Kintsugi and need to bring those existing credentials into the platform. It requires a username and password for the state’s tax portal, which you will not have for a brand-new registration. Always use the Monitoring › Not Exposed › Register path for fresh voluntary registrations.
How long does voluntary registration take?
Processing times vary by state, typically ranging from a few days to several weeks. Your Kintsugi Tax Operations team will keep you updated throughout the process.