Even if you are careful about product delivery, just selling the software could create nexus. I tell my software clients if they have a customer in Texas, they'd better register. Maintain perspective Whether your company buys or sells software or other products electronically, evaluating your tax risks is critical. A vendor should consider its sales volume in a state, as well as the activities of its sales and support staff. Chances are, your company will be actively marketing its software in every state where potential customers are located.
Many software companies provide their own on-site computer service and training.
If this is the case, you've already established nexus, no matter how you deliver your products. Your best bet may be to register and collect tax. If you are the buyer, look closely at state law and then examine your software licensing contracts. Unless you already paid tax or unless the transaction was exempt, you should start accruing it now. If you plan carefully and receive products electronically, you may be able to structure future transactions so they are exempt.