Senior Counsel William A. Morgan recently spoke with the Rochester Business Journal about the implications of multi-state e-commerce.

The article discussed a 12.2 percent year-over-year increase in U.S. e-commerce sales, reaching more than $340 million in the second quarter of 2026, and what it means for businesses.

“But selling across state lines, or employing workers who live in other states, can create tax nexus and new tax obligations for businesses,” the article pointed out.

William, a member of the firm’s Tax Practice Group, was one of three attorneys who spoke with the publication. He focused on how multistate tax exposure can extend beyond income and sales taxes.

“If you have an employee in a different state, you’re deemed to be doing business in that state,” Morgan told the RBJ.

That can mean filing an income tax return as well as registering with the state’s unemployment system and making unemployment tax payments there.

“Just because you have to file income tax returns doesn’t mean you’re necessarily going to owe them income tax either,” Morgan said. “But you do want to be in what’s called filing compliance.”

He added that businesses in regulated professions could run into licensing issues, too.

William advised businesses to seek guidance whenever their operations cross state lines to determine whether new tax, registration or other requirements may apply. A conversation with an attorney can help a business identify potential problems and obligations.

That can be particularly important with remote employees, Morgan said, because errors involving payroll withholding and unemployment taxes can carry significant consequences.

“The penalties and interest on those inure to the owners of the businesses personally generally, and they’re substantial,” said Morgan, who added that addressing those obligations from the outset can help businesses avoid unexpected costs and the more complicated task of correcting years of noncompliance.

To read all that William and others discussed on this subject, read the full article. (Subscription may be required.)