Manage episode 212286876 series 1770904
Similar to outsourcing fulfillment, today’s podcast guest says for many entrepreneurs, it may be best to outsource the collection, management and disbursement of sales taxes with the new Economic Nexus ruling by the Supreme Court.
In this podcast, first we cover what the decision means to online entrepreneurs, and how it will impact the average business. For some no action needs to be taken. For others a lot of action must be taken. And ignoring the details is not really an option.
Sometimes the least interesting subjects and work as an entrepreneur bring the most value. Well-managed financials are one such thing. Held within the broad “financials” umbrella is now sales taxes. While the answer to the questions, “should I collect” used to be grey. Everything is fairly black and white now. And the subject is never going away.
- Don’t geek out on Sales Taxes. Outsource it. See SALT experts below.
- If you have Nexus it means you have an obligation to potentially register and collect sales taxes or income taxes in a given state.
- Physical Nexus is where you are, where your business is, where you are storing inventory or where Amazon is storing it.
- Economic Nexus is the change with the Supreme Court decision. The states could define other ways to define Nexus. For instance either $100,000 in sales or 200 transaction in the last 12 months – and you could be required to collect sales taxes on those revenues that occured within their state…regardless of Physical Nexus.
- Economic Nexus takes effect immediately for the 24 states that already have them on the books. (Links below will lead to finding the 24 states)
- Notice and Reporting are other ways to determine Nexus. It’s really confusing!
- You MUST register to collect sales taxes. If you collect and do not remit, it is CRIMINAL.
- Hire an expert to register to collect sales taxes. There are 45 states that require it.
- Only register where you have to if you are a small seller. But if you are doing 10-20 million in revenue, “suck it up” and register everywhere.
- SALT experts can handle almost everything for you. See notes and links below. SALT is an acronym for Sales and Local Tax Experts
- Use www.WhereStock.com to determine where Amazon is holding your inventory. Seel link below.
- Taxjar is a good option if you wish to take on managing this yourself.
- Scott & his outsourced accounting team at Catching Clouds use Taxify (but recommend both options)
- The Supreme Court Decision may not increase a buyer’s liability in an asset sale.
Joe: So Mark Jason got an e-mail this week and he had a question and it was “What makes Quiet Light different?” And Jason gave it an interesting answer and I want
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