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Just 50 states would be easy. You're forgetting county and municipal/locality taxes. Or the varying due dates for each of those jurisdictions. Or whether or not
by meritt 7y ago
Just 50 states would be easy. You're forgetting county and municipal/locality taxes. Or the varying due dates for each of those jurisdictions. Or whether or not your widget business creates a nexus in those states and requires you to register as a foreign entity. Or whether or not your specific widgets trigger a higher or lower taxation rate. Or that whether or not shipping should be taxed also varies state to state. Or...
It's a whole lot of work to be legally compliant.
- zaroth 7y agoIt’s impossible for a small business to be entirely compliant. The best you can hope for is to be invisible. IMO it’s encumbent on the Fed to sweep all this away under interstate commerce and make compliance as close to a fully automated process as possible.
- deleted 7y ago[deleted]
- gamblor956 7y agoIt's actually quite easy for a small business to be entirely compliant. Step 1: use a SALT SaaS provider that handles your sales tax collection at point-of-sale. Step 2: there is no Step 2. Seriously, there are a dozen providers that handle SALT POS taxes, including Amazon FBA and Shopify.
- compsciphd 7y agoits more complicated than that. such as sales tax holidays and classifying stuff you sell correctly. i.e. packaged food might have no sales in some states but what qualifies as tax free food can vary from state to state. to get this right, you have to make sure you are classifying everything in a very verbose manner that covers every single state.