Most states require business sales tax collection and remittance. With the rise of e-commerce came stricter interstate sales tax enforcement, creating today’s minefield of regulations, penalties, and complex compliance processes. Is your business compliant with all 50 states and 35,000 municipalities? Our sales tax advisor services can help:
- Assess your sales tax nexus and liability
- Avoid unnecessary penalties due to non-compliance
- Proactively engage governments to negotiate favorable registration
- Maintain sales tax compliance as your business grows
- Develop comprehensive sales tax planning strategies
Do I need to file sales tax returns?
Some businesses never need to file sales tax. Others are required to begin filing day 1 of operations. Sales tax regulations vary from state to state – that’s what makes planning your tax strategy complex. A company may be required to file returns in California, Texas and Maine, but not Nevada, Oklahoma, or Vermont. As a rule of thumb, if you sell tangible personal property (think: physical goods) AND meet one of the below criteria, you need to collect and remit sales taxes:
- Your business is registered with the Secretary of State in that state.
- You have W-2 employees in that state.
- Your business has a physical location in that state such as a retail shop, warehouse, or office.
- Your business has salespeople who are residents of that state (contract or W-2.)
- Your business performs significant sales volume in that state.
“Significant sales volume” is defined differently by every state and is the most confusing requirement. Software tools like Avalara help you understand how “significant sales volume” requirements apply to your business, but do not monitor the other 4 qualifiers.
What if I don’t charge sales tax?
Failure to collect and remit sales tax is a crime punishable by fines and even jail time. Simply not collecting sales tax is never an option. Although immediate compliance may not be the right business solution, tax planning strategies should always include a path to sales tax compliance.
What are the best sales tax strategies?
Smart business strategic planning incorporates sales tax compliance to avoid unplanned regulatory expenses. No matter your size, a business selling tangible goods should:
Perform monthly sales tax account bookkeeping
Feel they can achieve their primary goals
Plan for compliance expense with interstate business growth
Become Sales Tax Compliant with CFOshare
CFOshare’s sales tax advisor services are the easiest way to ensure ongoing compliance. Our professional outsourced CFO’s will use our three step process to develop the best tax strategies for your business:
Nexus Study
Before filing any sales tax forms or contacting regulators, our accountants will analyze your current sales tax exposure, referred to as Nexus. You will be provided a written report and consultation identifying compliance issues and estimating financial liability.
Registration & Negotiation
Our team will register your business with states and municipalities in a way to minimize unnecessary business expense.
Ongoing Sales Tax Compliance and Monitoring
CFOshare’s outsourced bookkeeping will file sales tax returns and monitor compliance each month to avoid future penalties and compliance violations. We will also manage your sales tax account bookkeeping to ensure your financials are accurate.
Build your sales tax planning strategy now.
Every day accrues additional penalties and interest for non-compliance. Do not wait – contact us now to begin planning your sales tax strategy.