Sales Tax Nexus Analysis
SALES TAX NEXUS ANALYSIS
Avoid Successor Liability When You Purchase an Amazon Business. Find Out the Sales Tax Exposure of the Seller First.
Let us Help You Determine Which States to Register.
Suppose you are looking for your e-commerce brand to get into compliance so you may exit, obtain seed capital, or protect your brand. In that case, our comprehensive sales tax nexus analysis will provide you with four different strategies based upon your goals, nexus data, and cash flow requirements moving forward with your business.
If you had nexus before the marketplace facilitator laws or economic nexus laws, the process involves determining your total exposure. Our goal is to provide you a clear plan to move forward with compliance, including your best options to file any past sales tax returns (or register with a current start date and to pay the one-time sales tax on future returns), the fees for pulling your past data to prepare the returns, and voluntary disclosure options, if prevalent.
We provide solutions with our analysis whether you have a U.S. bank account for an ACH pull or not. We specialize in working with non-residents without a U.S. company or U.S. bank account to remit sales tax with our partners.
Our result will also provide you with a list of the states to register, all the fees involved with our sales tax permit registration services, state fees, and any fees if you do not have an SSN, and an application must be mailed to the state. Sales tax registration fees are separate.
Our service will provide you with options to save on past sales tax due, penalties, and interest for your e-commerce business. You will also know which states to unregister if registered, saving you money.
[Note] Keep in mind that tax software may only track economic nexus moving forward, but they don’t evaluate past economic nexus or compare against physical nexus before marketplace nexus.
Your Shopify store impacts economic nexus (as your website) and is important if drop shipping, or selling on a marketplace. Many states do include marketplace sales towards the 200 transaction thresholds.One Marketplace
Marketplace includes Amazon, Walmart, eBay, Etsy, Sears… A Shopify store or your own website is separate.Amazon FBA
If you are selling on Amazon in addition to another marketplace both are included. There are a few states where registration is required even if the marketplace facilitator is collecting on behalf of the sellers.Instructions to Sort Raw Data
Instructions to sort raw data. If you are pulling your data we will provide you instructions to sort your raw data to a CVS file with pivot tables steps to sort by month and by state.Sort Raw Data
Sort raw data means our team will do this for you. This means we will sort your data via a pivot table per month, and per state for our analysis.Spreadsheet Results
Spreadsheet results is where we will give you a comprehensive review of your results state by state, with the nexus laws of every state and footnotes about why you should register in each state.Sales Tax Due Estimator
Our final returns will provide you with an estimate past sales tax due in each state with penalties and interest, plus options when a voluntary disclosure agreement (VDA) is appropriate. We will also include options to save on past sales tax due, penalties, and interest.Number of Returns Estimator
Each of our four recommendations will provide you with an estimated number of returns in total and options for filing past returns with and without a U.S. bank account. Past effective dates will trigger monthly returns and more costs. We will provide you with the best options to lower the costs of your overall returns and if it makes sense to register with a current date moving forward.Email Summary
Our email summary will be a comprehensive chart with your four options, fees, and process for compliance.States to Register
You will be provide with the exact states to register and effective dates with different options for your situation.States to De-Register
You will be provided with a list of states to de-register, if you were previously registered. This comes into play with marketplace nexus states.Filing Frequency State Change Steps
When registered for sales tax, there are states where your filing frequency will be set by default to monthly, and we will provide a list of states and steps to change your filing frequency.Change Filing Frequency (10 states included, add $50 per additional state)
Includes our team changing up to 10 states filing frequencies that can save you money. Typically this involves going from monthly filings to quarterly.Ticket Support
Our world-class team will respond to your questions during our process promptly and professionally.Strategy Next Steps Call $297 Value
Our Platinum Package includes a live one-on-one phone call with our experts to review your final results and steps to move forward.
Basic Nexus Analysis
Standard Nexus Analysis
Platinum Nexus Analysis
- Software recommendations to sort data. If you are behind on sales tax each software has different fees based upon the amount of sales transactions overtime to sort.
- Steps (including pivot table steps) to sort FBA stock
- Steps (including pivot table steps) to sort sales on the following platforms, Amazon, Walmart, eBay, and separately Shopify.
- Add Ons
Additional Platforms or Shopify/website $147 per year. For example, sell on Amazon (one platform) for two years or less, which is included in the prices above. Sell on Amazon plus Walmart for two years, that is $147 extra.
Additional Years to Sort Data $97, Non-sorted Data $197 per year. Our packages include two years of data. For example, sell on Amazon and Walmart for three years. Packages include two years on one platform. It is $147 for the additional platform and $97 for one additional year for sorted data or $197 for non sorted data.
EIN Service. Foreign sellers will require an EIN to register you for sales tax permits after your Sales Tax Nexus Analysis is completed. Your start date in the U.S. may trigger previous U.S. tax returns. We will refer you to a CPA firm for direction. We do provide the EIN service. Learn more here.
Voluntary Disclosure Agreement. Separate fee per state.
Sales Tax Consultation. A 30-minute strategy session is included in our platinum package. Learn more here.
Sales Tax Registrations are separate. Learn more here.
If you have multiple entities or accounts that need a sales tax nexus analysis, email support to inquire about our multiple entity discounts. Each entity or account requires a separate analysis.
- Time Fame & Next Steps
Data pulled from your platform in a CVS file but not sorted by month and by states which is complete through a pivot table process. Instructions are provided for you do to this on your own.
This is where you send us your data via a CVS file (instructions are provided). We will sort your data for you via a pivot table by state, by month, by transactions, and by sales.
Time Frame and Process:
After payment and completing our Sales Tax Analysis Application and receiving all your sales data our team will review and start working on your sales tax nexus.
One platform with sorted data 3-5 business days
One platform with non-sorted data 5-7 business days
Two platforms with sorted data 7-9 business days
Two platforms with non-sorta data 9-12 days
Go to the three packages above and choose your level of support. Or email us your years of selling, which platforms, and if you want to send us your data sorted or not, and we will send you back a complete price quote with our add ons.
Product taxability assessment is separate.
Our estimated amount of tax due including interest and penalties is an estimate. An e-commerce accounting firm is recommended (or software) for an accurate amount.
- Case Study Pricing
Amazon Seller Behind on Sales Tax Three Years:
Selling on one platform and two years and under – include in our based pricing.
Decide to sort your own data into a pivot table with instructions provided to sort taxable sales by state, month, and year and are included in our base pricing.
Sales Tax System sorts your sales data into pivot tables $197 per year.
An additional year of sales $97 per year
Total Price Options:
A: $594 = $497 plus $97 for an additional year of sales and sort data into a pivot table, or
B: $1094= $897 package that includes Sales Tax System sorting your data plus $197 for an extra year of data sorted.
Protect Your Brand
To get into compliance with sales tax, you first must determine which states and when you first had nexus. This is a compliance process of sorting all your sales and transaction, per state, per month, per platform.
Watch our video below to learn how we will help you with protecting your brand.
Sales Tax Nexus Analysis
Different state, different nexus
What triggers nexus in one state doesn’t necessarily trigger nexus in another state. We understand the nuances, and we’ll make it clear for you.
How big is your nexus footprint?
Let’s find out. Once we complete our state-by-state analysis of your business activities, you’ll be able to determine where to register for a sales and use tax license or permit.
A clear path forward
So you find out you have nexus. What then? Don’t worry, you’ll walk away with a solid understanding of what you need to do next to move toward compliance.
Grab our 2022 Sales Tax Nexus Chart & Video
Sales Tax Nexus Analysis
If you have nexus in a state and have a responsibility to collect and remit sales tax, the states may assess both penalties on late sales tax returns, plus interest for being late with sales tax.
Risk assessment is key in moving forward with compliance and registration dates.
See the chart below for examples:
There are several factors involved in a sales tax nexus analysis, which include evaluating all your sales data from all the platforms you use to sell.
Number of Platforms. Those marketplace nexus platforms may include Amazon, Walmart, eBay, Etsy…We will need all your data from each platform, sorted by year and by state, to determine when you first had nexus, and whether it was before or after when marketplace nexus was enacted in the state.
If you are selling on a non-marketplace platform, such as your own website or a Shopify store, those sales are reviewed for economic nexus considerations. There are several states that combine your marketplace sales with your non-marketplace sales to determine nexus thresholds. For example, in some states, you might have 195 transactions on Amazon and only 5 on your Shopify store, and if that state combines those sales, those 200 total transactions will create sales tax nexus for that state.
Years Selling. The number of years you have been selling is important since economic nexus laws came into play in June of 2018 and marketplace nexus that started later that year. It is possible you have a past liability in several states and may be able to close out your sales tax registration after you are caught up. Trailing nexus is a factor in these situations, which means in some states you will need to file a return until the end of the year, or a full calendar year after your final sales tax return was filed.
Data Sorting. If your data is already sorted by state and by month, with both sales and transactions that will impact your price and our time frame to complete your sales tax nexus analysis. We provide steps to help you sort your data and pivot tables required to evaluate if you don’t use software that does this for you.
The process to get on track is to get started with our sales tax nexus analysis service and let us help you determine in which states you have nexus, what your past liability is, which states you need to register in even if the marketplace is collecting and remitting, which states to de-register, and which states to monitor closely.
In our evaluation, we will address the balance of crossing nexus and whether you should register at that point or later, based upon your economic exposure.
We will also address the options if you are looking to get acquired or not, which will impact your compliance options and cash flow.
You may pay on our secure link on this page and, after payment, you will receive a welcome email with a link to our sales tax nexus form to complete with the required data for us to complete the service.
Once you complete the form and upload your sales data, we will review the best way to move forward to complete your sales tax nexus analysis.
If your situation requires add-ons for more platforms or years of selling, we will let you know and send you a separate payment link.
It is recommended to register in the states you have sales tax nexus. If you only sell on a marketplace such as Amazon, you will want to receive our updated sales tax nexus compliance chart for 2021 to help you determine where Amazon is collecting and what dates they began collecting, which is very important.
The key part of our service is not only helping you determine which states to register but also the nexus start dates that are best for your situation.
Our sales tax nexus chart will help you better understand the current landscape of economic nexus.
Our sales tax nexus analysis will also tell you the states where you are not required to register, either because you don’t have nexus or the marketplace facilitator is collecting and remitting.
Registration is not required (which is not the case for every state). We will also recommend which states not to register with limited exposure if your situation warrants that approach.
After we receive your sales data from all your platforms and have completed our sales tax nexus analysis web import form, our team will review your data and information to let you know if anything is missing or unclear before proceeding with our internal analysis. We will let you know if you need any additional add-ons to our service.
Our team will proceed to evaluate your sales data by year, month, and state, to determine when you created nexus in the state.
We will send you a final spreadsheet with the results, plus a summary email with four different recommendations, including the states not to register, to deregister, and which you should register soon. We will include an outline for filing your sales tax returns (past and present) and services to pull your data to prepare your returns.
The fees for filing returns and sorting your data to file sales tax returns are separate and provided by our partners.
Our next step is to get you registered in the states that are recommended for compliance.
Our sales tax registration process is separate. Learn more at this link.
You may email our team at email@example.com with any additional questions about our sales tax analysis service.
Challenges in Sales Tax Nexus Compliance
When you are looking to get acquired or raising capital, compliance is a critical part of due diligence.
The next challenge is determining when you first triggered sales tax nexus within a state and the strategy to implement to meet your goals.
The next challenge is to balance all the costs involved now to protect your brand and profits vs. strategies to protect your cash flow and moves to make later with an exit.
States are now asking more questions when you register for sales tax, including did you acquire your business, the date of acquisition, the EIN of the previous owners, and the previous owner’s name.
Financial Security for Your Profits and Brand
Minimizes your past liability and overall sales tax compliance cost with filing returns.
Launch Your U.S. E-Commerce Business and Sell Your Product to the U.S. Market
Complete Support from Company to Sales Tax Guidance
Find out how we can help you get into compliance from start to finishSchedule Your Free Discovery Call - Click Here