There are multiple types of taxes. If you're selling a product/service then where you're servers are located can matter for state sales tax collection. For

There are multiple types of taxes. If you're selling a product/service then where you're servers are located can matter for state sales tax collection. For instance Texas considers databases warehouses for state tax reasons, which creates "tax nexus" a term of art in taxation with Texas. Once tax nesus has been created then you would have to collect texas state sales tax which is 8%+ (check rates) for everything you sell in state, and if you don't collect it from customers when you sell it you still owe it to the state and can't go back to the customers to get it! Now Amazon does everything they can to not collect state sales tax, thus most of the AWS bits are in states that avoid the collection of state sales tax. All I can say is that it's a lot cheaper to spend money on an hour or two of an experts advice before you do something than to fix a mess later. If you're in startup mode it sucks, but may be required.