Final answer:
A BD Firm serving minimal clients in a state may be exempt from state tax obligations, using technologies to avoid establishing a taxable nexus. The Marketplace Fairness Act of 2013 solicited support from companies like Amazon because it standardized sales tax collection across states, which could benefit larger companies with existing infrastructure to handle new tax regulations.
Step-by-step explanation:
A BD (Broker-Dealer) Firm that does not have an office in a state and serves 5 or fewer clients in that state may be exempt from state tax obligations. This exemption stems from the idea that the business activities in that state are minimal, and therefore, the firm may not meet the nexus requirement for taxation. Firms may use technologies to provide services without establishing a physical presence, which can help in avoiding state taxes. For example, using online platforms to interact with clients can avoid the conventional physical office setup.
Regarding the Marketplace Fairness Act of 2013, this Act aimed to level the playing field by requiring online merchants to collect sales taxes even when selling to customers in other states. A company like Amazon.com might support such regulation because it would enforce uniform taxation standards on online and physical stores, potentially eliminating any disadvantage to having a physical presence. Moreover, large businesses may have the infrastructure in place to handle the compliance costs associated with tax collection, unlike smaller competitors.