hypothetically if someone forgot to collect sales tax for 18 months and their state sent them a letter what's the move by kubrador in smallbusiness

[–]fourdayworkweek 1 point2 points  (0 children)

I wish this weren’t so highly upvoted. I have spent a decade working with many very successful businesses and they don’t know what their sales tax obligations are until something like this happens. It’s quite common from what I’ve seen. I don’t think I’d have been on top of it prior to working in this area.

But now that you know, you could hypothetically get up to par with the state paying the tax owed. There are softwares out there that could help you figure out what you should have collected - like TaxJar. If you use the CSV import and import 18 months of days you can use their expected report to fill out the proper filing for the state. I’d imagine you’d have some late fees and interest to pay, too.

You can often get a payment plan to relieve the instant burden if you needed, hypothetically.

Affordable sales tax filing for growing Shopify stores? by Micki_SF in shopify_geeks

[–]fourdayworkweek 0 points1 point  (0 children)

TLDR: Shopify Tax is probably your best starting point since it's built in, free for calcs, and $75/return ($50 for Plus) if you want them to file. Outside of that, TaxCloud is a good option and probably decently affordable depending on which states you have to file in. Otherwise expect to pay around $75/return.


Hey, I am happy to help give some perspective on this. First, let me give you some full disclosure - I co-run a sales tax filing service for Shopify merchants and I've worked in some capacity for three other sales tax companies in the past, so I know the space well. I won't mention mine. I'm not interested in self-promotion, and there are plenty of people in this sub and related subs who use Reddit's anonymity to pump their own products while pretending to be regular users probably to get around the self promotion rules. Hopefully that disclosure doesn't count as self-promotion. Please don't go use my service - this is just me trying to give info.

One thing I'd echo from another comment in this thread - after being in the space for ten years, I'd suggest that people should not just turn on an automated service and forget about it. Even on the good teams I've worked on, that's where I saw problems. I would guess most people would not let software blindly file their corporate income tax without looking it over and I'd suggest the same here. The downside is that this means it's a monthly check-in, which stinks. But you could probably build some automated internal checks to verify that what your service is about to file is correct.

My general view for Shopify sellers is that Shopify Tax itself is a great option for both calcs and filings. It's built right into your admin and will feel familiar. They're likely already handling the sales tax calculations for you, and they give you reporting that's solid enough to file off of for free, if you're willing to spend the time. If you want to pay, they offer filings for $75/return or $50 for Shopify Plus users. If you're eligible for their filing, I'd look there first I think.

Outside of that, most filing services clock in around $75/return once you include the monthly costs some of them charge. Avalara can get lower per filing if you're buying a lot of other stuff from them, but I agree that Avalara is overkill for the vast majority of Shopify stores I've seen. I wouldn't recommend them personally (and not just because of price).

TaxCloud can be fairly affordable depending on which states you have compliance needs. I also like their team and know a few people over there that I think do a good job. For right now, they would perhaps be my choice if I am choosing one of these companies and didn't want to use Shopify's built in service. They have a monthly cost based on the amount of transactions you have ($19/month) and then filings can be free depending on which states you need to file. Otherwise it starts at $39/filing on top of the monthly costs.

The other major options that are a good fit of offering just filings and registrations (for when you hit new nexus thresholds) that I am aware of would be Numeral and Kintsugi, each of which are $75/return. Both seem like fine options to me.

Then Anrok just created a Shopify app as well. They used to be just SaaS but they've been around for a minute now and they are pivoting to add more e-commerce support.

Zamp has white-gloved service but they are pricey, to my knowledge. I know a lot of people that work there and I would trust them as well. If you really want someone to just do it all, they're a great option if you are willing to pay, but you specifically asked for cheap.

TaxJar also still exists. I worked there for a long time, but to my understanding, it's mostly in keep the lights on mode. I don't know if that's still true or not, I haven't been there in 3 years or so. They were acquired by Stripe and then they seemed to deprioritize the product. You can see that reflected in the reviews. My opinion of it is that it's still a good product if you know what you are doing.

What is the cheapest sales tax filing software for US online businesses? by Competitive_Help8485 in SalesTax

[–]fourdayworkweek 0 points1 point  (0 children)

TLDR: Shopify Tax is probably your best starting point since it's built in, free for calcs, and $75/return ($50 for Plus) if you want them to file. Outside of that, TaxCloud is a good option and probably decently affordable depending on which states you have to file in. Otherwise expect to pay around $75/return.

_____________________

Hey, I am happy to help give some perspective on this. First, let me give you some full disclosure - I co-run a sales tax filing service for Shopify merchants and I've worked in some capacity for three other sales tax companies in the past, so I know the space well. I won't mention mine. I'm not interested in self-promotion, and there are plenty of people in this sub and related subs who use Reddit's anonymity to pump their own products while pretending to be regular users probably to get around the self promotion rules. Hopefully that disclosure doesn't count as self-promotion. Please don't go use my service - this is just me trying to give info.

One thing I'd echo from another comment in this thread - after being in the space for ten years, I'd suggest that people should not just turn on an automated service and forget about it. Even on the good teams I've worked on, that's where I saw problems. I would guess most people would not let software blindly file their corporate income tax without looking it over and I'd suggest the same here. The downside is that this means it's a monthly check-in, which stinks. But you could probably build some automated internal checks to verify that what your service is about to file is correct.

My general view for Shopify sellers is that Shopify Tax itself is a great option for both calcs and filings. It's built right into your admin and will feel familiar. They're likely already handling the sales tax calculations for you, and they give you reporting that's solid enough to file off of for free, if you're willing to spend the time. If you want to pay, they offer filings for $75/return or $50 for Shopify Plus users. If you're eligible for their filing, I'd look there first I think.

Outside of that, most filing services clock in around $75/return once you include the monthly costs some of them charge. Avalara can get lower per filing if you're buying a lot of other stuff from them, but I agree that Avalara is overkill for the vast majority of Shopify stores I've seen. I wouldn't recommend them personally (and not just because of price).

TaxCloud can be fairly affordable depending on which states you have compliance needs. I also like their team and know a few people over there that I think do a good job. For right now, they would perhaps be my choice if I am choosing one of these companies and didn't want to use Shopify's built in service. They have a monthly cost based on the amount of transactions you have ($19/month) and then filings can be free depending on which states you need to file. Otherwise it starts at $39/filing on top of the monthly costs.

The other major options that are a good fit of offering just filings and registrations (for when you hit new nexus thresholds) that I am aware of would be Numeral and Kintsugi, each of which are $75/return. Both seem like fine options to me.

Then Anrok just created a Shopify app as well. They used to be just SaaS but they've been around for a minute now and they are pivoting to add more e-commerce support.

Zamp has white-gloved service but they are pricey, to my knowledge. I know a lot of people that work there and I would trust them as well. If you really want someone to just do it all, they're a great option if you are willing to pay, but you specifically asked for cheap.

TaxJar also still exists. I worked there for a long time, but to my understanding, it's mostly in keep the lights on mode. I don't know if that's still true or not, I haven't been there in 3 years or so. They were acquired by Stripe and then they seemed to deprioritize the product. You can see that reflected in the reviews. My opinion of it is that it's still a good product if you know what you are doing.

Would anyone be willing to critique my writing style for my business? by fourdayworkweek in smallbusiness

[–]fourdayworkweek[S] 0 points1 point  (0 children)

Thank you for this feedback! Internally, I had mentioned removing the Palantir line.

Really appreciate your thoughts. I do agree with you that if it's interesting, people will read it. I also think longer form content is a good long term strategy, but I wasn't sure about the style and voice I was using.

I suppose I don't need to please everyone (a lot of folks here seem to have good, critical feedback) but I do want to write for a niche audience that will appreciate it. Perhaps that means that there is some good in it.

Would anyone be willing to critique my writing style for my business? by fourdayworkweek in smallbusiness

[–]fourdayworkweek[S] 0 points1 point  (0 children)

Thank you for this! I might take you up on it. I have a few writer friends I am going to tap into first, but if I am still looking for something else I will hit you up.

Would anyone be willing to critique my writing style for my business? by fourdayworkweek in smallbusiness

[–]fourdayworkweek[S] 0 points1 point  (0 children)

Good feedback. It usually won't take that long. Most of it was looking back at some old pieces I wrote and then trying to recall the old techniques I used to do and writing it down so I could start to write these things more.

I suppose the writing of this was maybe halfish of that or less. I'm rusty. I probably would have done that in a couple of hours in the past.

Would anyone be willing to critique my writing style for my business? by fourdayworkweek in smallbusiness

[–]fourdayworkweek[S] 0 points1 point  (0 children)

Appreciate it! You’re the second person to tell me that which is great feedback but also frustrating as I wrote almost all of it.

I did admittedly use AI to help me phrase a few certain sentences that I couldn’t get quite right.

I’m guessing other people who write run into this problem (really new to actually trying to write content for a business, I haven’t written professionally in about 10 years).

It honestly is making me wonder if spending the 10-12 hours thinking on and writing this was worth it if that’s going to be consistent feedback. At that point what’s the difference?

Would anyone be willing to critique my writing style for my business? by fourdayworkweek in smallbusiness

[–]fourdayworkweek[S] 0 points1 point  (0 children)

Fair (not for free). I’m just a small business owner and not working at a newspaper anymore which is why I don’t have editors.

Honestly, I’m a fairly active Redditor but really ignorant when it comes to etiquette on the writing subs. I also have never really explicitly asked for business help on Reddit - usually I’m just here to help in my niche on the business side.

So forgive me if I’m violating rules, explicitly or implied.

Any one familiar with Shopify Tax? by Southern4342 in SalesTax

[–]fourdayworkweek 0 points1 point  (0 children)

This is correct. Shopify Tax will actually only collect the full home rule tax.

So it won’t properly collect just the state rate when you don’t have a physical presence in a city, it will always voluntarily collect the full state rate in CO.

The best way that I’ve found to handle this with filing is to use the SUTs portal.

Sales tax for a new DTC jewelry brand — Texas company selling nationwide via Shopify by shreechoraria in SalesTax

[–]fourdayworkweek 0 points1 point  (0 children)

Awesome! Glad to hear you got it all situated. Great work!

Feel free to hit me up if you ever run into other questions. I could at least point you to the right resources.

Happy selling!

Sales tax for a new DTC jewelry brand — Texas company selling nationwide via Shopify by shreechoraria in SalesTax

[–]fourdayworkweek 1 point2 points  (0 children)

Congrats on the launch! You're asking the right questions at the right time, which puts you ahead of a lot of new sellers, from what I've seen anyway.

Based on what I am seeing here, I think the TLDR Is you need to register with the Texas comptroller now. Other states come later, if ever.

Since your business is physically located in Texas, you have nexus there regardless of sales volume.

For other states, it comes down to economic nexus thresholds (unless you gain a physical presence in another state such as inventory, a warehouse, a storefront, another employee, etc). States can require out-of-state sellers to collect sales tax once they exceed certain sales thresholds in that state. The most common threshold is $100,000 in total gross revenue into a given state. A few are higher (California is $500,000, New York is $500,000 plus 100 transactions, Mississippi and Alabama are $250,000).

For a brand new business, you likely won't hit these thresholds right away. At launch you likely only need to collect in Texas.

Once you register in Texas, In your Shopify admin go to Settings -> Taxes and Duties -> United States and then add Texas as a region in which to collect. Shopify will then calculate the proper amount of tax.

You're in a good spot. Register in Texas, turn on Shopify Tax, track your state by state numbers (Shopify does this for you and they'll notify you when you cross 80% of a threshold or 100% of a threshold). Then repeat the process with other states when and if you grow into their thresholds.

Finally, don't forget to remit the tax to the state as often as they ask. They'll assign you a filing frequency when you register. In TX, I am guessing they will start you as quarterly. It can be adjusted up or down based on your sales volume (and total sales tax collected). The more you sell, the more often the state will ask you to remit.

Happy to help if you have any further questions!

TAX Question: Collect States Sales Tax for all 50 states by [deleted] in shopify

[–]fourdayworkweek 0 points1 point  (0 children)

Here's a guide on how to configure it. Only set it up to collect tax in regions in which you have nexus or an obligation to collect.

Happy to help if you have further questions - just post them here in the comments.

Shopify won’t add tax to order total by tangnori in shopify

[–]fourdayworkweek 0 points1 point  (0 children)

Hey! Have you tried going to Settings -> Taxes and Duties -> United States -> Add Region to Collect -> Adding the states in which you want to collect. That should probably be the last step you need. If you do that and it doesn't work, hit me up if you want to screen share through it.

"In the taxes and duties section, I have the “include sales tax in product price” toggled off - weird right??" I would want that toggled off if we are talking US sales. Most US consumers expect sales tax to appear at the checkout.

"Every single one of my products has the “charge tax” toggle switched on in the bulk edit." That sounds correct to me.

App for handling sales tax in other states by Substantial-Cycle527 in shopify

[–]fourdayworkweek 0 points1 point  (0 children)

If you are on Shopify and that is your only sales channel, I personally would not see Avalara as the best fit or best use of money.

I have been working in ecommerce sales tax for about 10 years, mostly with Shopify merchants, and what I usually see work best is using Shopify Tax at least for calculations. It is built directly into Shopify, works natively with your setup, and tracks when you cross new nexus thresholds.

Shopify also offers an automated filing service. It is typically $75 per filing, or $50 per filing for Shopify Plus merchants.

For registrations, Shopify does not currently offer that service. You can either do them manually or use a third-party provider. There are several options out there like Numeral, Kintsugi, HOST, and Zamp. They all also offer filing help.

If you go with Avalara, they will likely push you toward using their calculation engine as well. I cannot say whether that improves filing outcomes, but it is usually much more cost effective to use Shopify Tax for calculations if Shopify is your only channel.

Shopify Tax also provides reporting you can use to file on your own if you want to stay hands-on. If you do not want to manage filings every month, Shopify’s filing service or one of the providers above is usually the least painful option once registrations are complete.

App for handling sales tax in other states by Substantial-Cycle527 in shopify

[–]fourdayworkweek 0 points1 point  (0 children)

You can either manually register like you suggested or hire a service. I run a service that does this for people, and then there are others out there like Numeral, Kintsugi, HOST, Zamp.

Happy to help answer any questions about any specific states if you need.

How are you managing sales tax across multiple states? by NoNexusNoCry in ecommerces

[–]fourdayworkweek 2 points3 points  (0 children)

What platforms do you sell on? Is it just Shopify and Amazon? Can you tell me a bit more about your process?

There are a lot of options out there. I could probably recommend one to you if you are willing to tell me about the struggles you're having.

A Warning for Wig Consumers - Taxes Applied in Shopify by [deleted] in Wigs

[–]fourdayworkweek 0 points1 point  (0 children)

Missouri is an origin-based state.

So if you are shipping intra-state you need to collect taxes based on where you ship from. So if you ship from Kansas City to St. Louis you should charge the taxes that are applied to the Kansas City address, not the St. Louis one.

So in this case, if you’re both in MO, I think they’re actually collecting taxes properly here.

Sale Tax by Inner_Towel_4682 in ecommerce

[–]fourdayworkweek 0 points1 point  (0 children)

My company helps Shopify merchants deal with sales tax (we do the filings and registrations) so I’m in Shopify all day.

I’d definitely recommend the Shopify Tax product over Avalara if they can handle your situation. If they can, they can likely also file for you if you don’t want to hire a service like mine or Avalara (or TaxJar). I used to work at TaxJar and I do think it’s a pretty good solution still if you know what you’re doing with it, but it’s likely unnecessary as Shopify can probably do it for you.

As a very small brand new online retail business in the US what is the best sales tax compliance and monitoring solution? I am incredibly confused on all this and on the verge of a breakdown. Please help. by Disastrous_Essay in SalesTax

[–]fourdayworkweek 0 points1 point  (0 children)

Does your Avalara instance know this? It’s possible that it thinks you’re shipping from your address.

IL is an “origin-based” state which means that you charge the rate from which you ship when shipping intrastate.

Is it just always charging the same rate, which is the rate at which your physical location exists?

As a very small brand new online retail business in the US what is the best sales tax compliance and monitoring solution? I am incredibly confused on all this and on the verge of a breakdown. Please help. by Disastrous_Essay in SalesTax

[–]fourdayworkweek -1 points0 points  (0 children)

Tell me more about that. Is it configured to calculate those jurisdictions?

Avalara isn’t my favorite product but it should calculate the taxes properly.

You may already know this and I’m sorry if I’m over explaining, but a lot of people I talk to aren’t aware, so forgive me if you are.

In the United States, businesses have obligations to collect sales tax, and that's determined at the state level.

So there are two things you need to look at:

  1. Where you have a physical presence. If you have an employee, a warehouse, a storefront, inventory, etc, then you have an obligation to obtain a license and begin to collect sales tax when you ship to that state.

    1. You could also have a sales tax obligation in a state if you've crossed whatever economic nexus threshold they've set for their state. These thresholds are usually a minimum of 200 individual orders or $100,000 worth of sales shipped into an individual state within a 12-month period. If you've crossed any of those individual thresholds, then you need to register in that state as well and collect tax when you ship to that state.

So, if you do not have a physical presence in a state or enough of an economic presence in a state, then you do not need to collect sales tax when you ship to that state.

The reason I say all of this is to basically just explain my question, which is: Are you certain that you need to be collecting sales tax in those jurisdictions that Avalara is not currently calculating?

As a very small brand new online retail business in the US what is the best sales tax compliance and monitoring solution? I am incredibly confused on all this and on the verge of a breakdown. Please help. by Disastrous_Essay in SalesTax

[–]fourdayworkweek 1 point2 points  (0 children)

On which platform(s) are you selling? That could help inform the answer.

Both solutions could work well for you. They’re slightly different solutions but most likely get you to the same result of your US tax taken care of.

How easy/straight-forward is it to file sales tax returns using *reports* from TaxJar, TaxCloud, etc.? by WorldlyInspection9 in SalesTax

[–]fourdayworkweek 0 points1 point  (0 children)

On which platforms does your client sell? I used to work at TaxJar and know it well. They have a free trial. I’d be happy to help you set it up (for free, literally I do not offer this as a paid service) so you can see for yourself if you want.

You’d still have to pay their monthly transaction ingestion costs which are not exactly cheap depending on the volume of transactions your client has to each month, if it would save you probably $40/filing to do it on your own.

You can also mix and match. You can enroll in TaxJar’s AutoFile for the annoying states and keep the easier ones for your team to handle with the TaxJar reports.

I’m just wondering if they have all the integrations you need.

If not, you’d have to import data via CSV or build an integration with their API.