Yes, you need to collect sales tax on all sales to New Jersey and
Delaware customers. The fact that your business is incorporated in
Delaware gives you nexus there and it would be considered the home
state, and New Jersey would be considered a satellite office.
Currently there's a federal ban on any "internet tax" and forced
collection of another state's sales tax, except: ...you have a
responsibility to collect sales tax from customers in any state where
you have physical business presence and activity, ie: your home state,
and any other state in which you have a physical presence.
..."The United States Supreme Court has exempted most Internet and
mail order firms from collecting state and local sales taxes, citing
its adverse impact on interstate commerce..."
Say you lived a block from a state line, and during an expansion, you
rented an office for staff process internet orders and that new office
was just across the border. Then, you'd have to collect sales tax from
customers in that state too.
There's another example below, and more information at the link.
Sales Tax on the Internet: Who Pays It, Who Doesn't
..."Some Internet sales are subject to sales tax, and even when a site
doesn't collect sales tax, consumers are technically responsible for
remitting any unpaid sales tax on online purchases directly to their
Collecting Sales Tax: Some Sites Have To, Some Don't
If an online retailer has a physical presence in a particular state,
such as business offices or a warehouse, it must collect sales tax
from customers in that state. If a business does not have a physical
presence in a state, it is not required to collect sales tax for sales
from customers in that state...."
..."Margo is passionate about rare orchids but can't find them in
Indiana, so she orders her supplies online from an orchid supplier
with headquarters in Vermont. The supplier has all of its facilities
in Vermont and collects payment in Vermont. Margo does not have to pay
Indiana sales tax (or Vermont sales tax) on her orchids...
[ note, technically Margo is still responsible to pay her HOME state
of Indiana USE TAX in lieu of sales tax ]
...A few months later, the supplier opens a warehouse in Indiana to
handle its online orders for the entire country. Margo continues to
order her orchids from the headquarters in Vermont but she must now
pay Indiana sales tax. Her ride on the tax-free train is over..."
[ Margo must now pay sales tax to Indiana (via Vermont) because her
orchid supplier opened a warehouse in her state. Even is she orders
them from Vermont and the money goes to Vermont, the Vermont business
is present in Indiana, Margo is a resident of Indiana and therefore
the orchid company must collect the Indiana sales tax and send it to
the state of Indiana. Now, Margo is not responsible for paying the
'use tax' anymore. ]
Here's more resources:
Navigating the Internet Sales Tax Laws
Internet Sales Tax Fairness
Internet Sales Tax Resources
According to the Sales Tax Institute, having temporary or permanent
salespeople in a state does create sufficient physical presence --
also called "nexus" -- and requires you to collect sales tax in those
It's possible that some of the states have different rules for what
establishes nexus, which may be in your favor. These states would need
to be researched to determine this. If the salespeople travel through
a state, you may be able to avoid collecting the tax, but if they live
there it is doubtful.
Sales Tax Institute - Sales Tax FAQ
What is nexus?
Nexus, also known as sufficient physical presence, is the determining
factor of whether an out-of-state business selling products into a
state is liable for collecting the tax on sales in the state. Nexus is
created if your company maintains a temporary or permanent presence of
people (employees, service people or independent sales/service agents)
or property (inventory, offices, warehouses). The temporary presence
is created through traveling people visiting states to call on
customers or prospects, trade show attendance, or consigned inventory
in warehouses. Nexus is created once a substantial physical presence
is established. Unfortunately, this is not clearly defined by each
state and can vary from 1 day to a number of days in other states.
Nexus means a business entity has established a direct or
representational presence within a particular state or jurisdiction.
This presence gives the state the right to require a company to pay or
collect and remit certain taxes.
How do I know if I should be collecting tax in a state?
You are responsible for collecting and remitting sales tax to a
jurisdiction if you have established substantial presence in the state
of delivery. Once established, you have created nexus. The threshold
for this presence differs from state to state and a company?s presence
in each state should be examined to determine if nexus has been
established or not. A company clearly has nexus if there is a business
location or there are employees living in or working in the
state/jurisdiction. Once you establish nexus, you are required to
register as a retailer with each state before collecting sales tax for
that state. ..."
Search terms used at Google:
Internet "sales tax"