If you need some help with your sales tax, we have several options - (DO IT YOURSELF) a sales tax consultation: calendly.com/ledgergurus-sales-tax/, (DO IT WITH YOU) a sales tax course: ledgergurus.thinkific.com/collections/sales-tax, or (DO IT FOR YOU) our sales tax services: ledgergurus.com/services/sales-tax/
Thank you so much for this video! It's obvious a lot of work and research went into this along with very concise information and opinions I found valuable.
This was very helpful, thank you! You mention Woo Commerce. Do they have their own engine? If so, do you recommend using their engine and just filing with one of these apps? Thank you.
Woocommerce does have an engine: woocommerce.com/products/tax/. However, these tools are not just an engine but also a filing tool. You can do your own sales tax, though it takes some time. We have a course that can teach you how to do it: ledgergurus.thinkific.com/collections/sales-tax?RUclips&
Your videos have been very informative and helpful for understanding the complication of sales tax duties. I was thinking of starting multiple print on demand stores under one LLC, but Shopify tax doesn't support combining multiple store data into one report for tracking nexus and reporting. Do you know the best software for this? Now I'm thinking I will have to create multiple LLC's instead..
I would suggest you schedule a consultation to discuss the complexities of this with our sales tax experts. You can do that here: calendly.com/ledgergurus-sales-tax/?RUclips&
I'm just starting out selling through my online website in Buffalo NY. Is it recommended that I pay for something like Avalara for both calculating the tax, and remitting the tax seeing as I haven't even sold anything yet, nor do I know when I'll even sell enough to pay for that service? Also, you had stated that I can't start charging tax to another state until I meet that threshold. But what happens if I am just under that threshold, and then over the course of the day multiple customers purchase items which push me far over the threshold? Obviously, I wouldn't have had my website setup to charge tax yet, so therefore, no tax would have been collected. One other question if you don't mind. Lets say the threshold for a certain jurisdiction is $100,000. Does that start over annually, or is that over the life of what is made by my business for that jurisdiction? Thank you!
You may want to start out with a less expensive tool. Maybe look into Sovos or TaxJar. When you see that you're starting to get close to the threshold in a state, pay attention so you know when to register. Also, different states have different requirements. You can see a full list at the end of our 10 Steps to Ensure Sales Tax Doesn't Burn Down Your Ecommerce Business guide. You can find that here: ledgergurus.com/portfolio/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/?RUclips& The threshold is an annual threshold.
Thank you for such an awesome video, Kexin. Always killing it! Do you know if Sovos Taxify has resolved their connection issue with Shopify yet? And has any of your clients experienced complications when switching to a different software as their business need changes? Such as switching from Taxify to Avalara?
We don't have an update on the connection issue between Sovos and Shopify. There are always a few bumps when switching software's because the setup is a little different with each of them. The customer service isn't great with Sovos or Avalara, so that can be frustrating. We hear some clients really have a hard time with Avalara because they feel like the customer service is awful and they can't get help. We have experienced the same thing until we found good reps with MRA (Managed Returns).
My state only doesn't require me to collect or report out-of-state sales taxes. I am cancelling my Avalara subscrtiption because my renewal went up 980%. I only njeed a sales tax calculator for my home state . My business is small so which tax app would you recommend?
@@LedgerGurus got it! are there any tools you'd recommend just for filing? or does this have to be done manually if your sales tax engine does not do it?
Thank you so much for all of your informative videos. I have some questions and hoping to get reply from you. I am non US resident, and planning to launch first products on May with local entity. So, in this scenario when should I consider about the sales tax and will Amazon collect sales tax please ?
We can give you more individualized help specific to your situation in a consulting call. You can schedule to meet with us at ledgergurus.com/ecommerce-accounting-services/sales-tax/
Very Nice explanation . I just started retail arbitrage on amazon in Texas but I have no idea that whether should get the sales tax permit from Texas or not ? Can you help me understand this ?
Excellent video. I Live in india. I have an e-commerce website offering phone cases (created using ecwid) to US & other western countries. Do I need to collect tax on my website? My website is a POD website, I will have my product made by sites like prodigi, printful once I receive an order. Please explain in simplest possible terms. I do not want to be involved in this tax thing
I cannot answer your question because there are nexus considerations that you haven't mentioned. Your best bet is to schedule a consultation with one of our sales tax experts and get your questions answered. You can do that by clicking on this link: calendly.com/ledgergurus-sales-tax/?RUclips&.
We have just over a million in sales, but growing. We also only have one product, a nutritional supplement. Which company do you recommend we use. My first inclination is TaxJar.
There's a lot more to answering that than we can put into a RUclips comment section. If you want detailed advice, we invite you to schedule a sales tax consultation with one of our experts. calendly.com/ledgergurus-sales-tax/?RUclips&
That depends on what your sales are. Unless you're growing really quickly, it's likely that the only state you have to worry about nexus in is your home state. You will need to collect and remit sales tax for customers in your state. You'll want to keep an eye on your sales as you get bigger, especially as you start approaching nexus in other states. For a really good idea of what to pay attention to, check out our free sales tax masterclass - ledgergurus.thinkific.com/courses/the-uncomplicated-truth-about-sales-tax
Thank you so much for all your videos! I have a question & hoping to get some clarification from you. Here is my situation - I was running my business as a sole proprietor and got my seller’s permit in July 13, 2022. I recently just got my LLC last March 6, 2023 (I’m about to apply for my seller’s permit for my llc this week) Question: For fiscal yearly reporting, I know the reporting period is from July to June. Do I file my sales tax return for July 13, 2022 to march 5, 2023 and file another sales tax return for my LLC for the period of March 6 to June 30, 2023?? I’m so confused! Please help :(
Did the company open up a new sales tax account with the state for the LLC? Most of the time you can call the State and update the information on the company and keep the same account. If there are 2 accounts they need to file the final return for the sole proprietor and then file for the LLC when that return is due. If they just updated the company information than there should only be the one return to file.
Thank you. I’m new to Shopify. Is it mandatory to collect tax from each state ? I didn’t have to do that with PayPal. Does that mean I have to get a tax ID from each state? I appreciate your reply.
@@Neta4Christ Please watch our free sales tax masterclass. It will help you so much, and will answer this question, as well as many others - ledgergurus.thinkific.com/courses/the-uncomplicated-truth-about-sales-tax
You've come to the right place. We've created 2 sales tax courses and a free masterclass, all on sales tax. You can find them here - ledgergurus.thinkific.com/collections/sales-tax. The free masterclass goes over the basics and talks about what NOT to do when you're setting up your sales tax. The basic course covers the entire process, but goes lightly on the nexus analysis part. It's meant for sellers with nexus in 1-3 states. The premium course covers the same process but goes in-depth with how to do a nexus analysis and how to determine sales tax exposure and make decisions accordingly, as well as how to manage multiple states. It's geared for sellers with nexus in more than 3 states states or accountants who are trying to learn the process to do it with their clients. It covers the same process we use for our full-service sales tax clients. I hope that helps.
So, you only need a sales tax filing tool if you are selling directly online from your own website, but not if you are selling solely via a marketplace platform, is that correct?
I am using shopify selling drop shipping from Utha, but business is in Florida. I would be happy if you can help me with my small business. little sales for the moment. but all is shipped from Utah.
No. Shopify is not a marketplace facilitator like Amazon and eBay, and does not collect and remit for you. For more information, watch our free sales tax masterclass - ledgergurus.thinkific.com/courses/the-uncomplicated-truth-about-sales-tax?RUclips&
@@pamkeeler993 Sure! You can schedule a consultation with one of our sales tax experts and they can show you how to do that. Click here to schedule - calendly.com/ledgergurus-sales-tax/
I ABSOLUTELY would not suggest avalara right now as is. I signed up for it based on this video and the customer service is abysmal. I am not exaggerating when I say it's the worst I've ever experienced. Also extremely poor user experience, they really need a design team. On the surface looks fine, ui looks good, but the user experience is just terrible. For example, why is there a 10 day period to accept the calculated tax return but no button to reject or recalculate? It was so odd that even customer service just expected there to be one and no one could answer why there wasn't one or how to fix your taxes then.
For anyone who starts experiencing issues with avalara, I would reach out to their customer care team. This doesn't necessarily change their very poor customer service, but they did assign me a new account manager at least so fingers crossed that I can get some of my issues resolved after 6 months and going through all their methods of contact.
If you need some help with your sales tax, we have several options - (DO IT YOURSELF) a sales tax consultation: calendly.com/ledgergurus-sales-tax/, (DO IT WITH YOU) a sales tax course: ledgergurus.thinkific.com/collections/sales-tax, or (DO IT FOR YOU) our sales tax services: ledgergurus.com/services/sales-tax/
Your videos have been so much help, thank you! You seem to be one of the few people who actually know what they are talking about
You are so welcome! Glad to help. :)
I moved to Nevada, I registered my business and learning how to file my business taxes. This is very helpful.
Glad it was helpful!
Thank you so much for this video! It's obvious a lot of work and research went into this along with very concise information and opinions I found valuable.
So glad we could help! Thank you for letting us know. :)
This is brilliant! You are excellent at explaining this!
Thanks so much!
Great vid, very helpful!! We're not yet there but once we get into the bigger numbers, I'll definitely keep you in mind to help us out! Tks!!
Awesome! Thank you.
This is super helpful! Thank you so much! There’s not much info out there about the filing services, so this was great!!!
Glad it was helpful!
This was very helpful, thank you! You mention Woo Commerce. Do they have their own engine? If so, do you recommend using their engine and just filing with one of these apps? Thank you.
Woocommerce does have an engine: woocommerce.com/products/tax/. However, these tools are not just an engine but also a filing tool. You can do your own sales tax, though it takes some time. We have a course that can teach you how to do it: ledgergurus.thinkific.com/collections/sales-tax?RUclips&
Amazing video! Thank you.
Glad you liked it!
Your videos have been very informative and helpful for understanding the complication of sales tax duties. I was thinking of starting multiple print on demand stores under one LLC, but Shopify tax doesn't support combining multiple store data into one report for tracking nexus and reporting. Do you know the best software for this? Now I'm thinking I will have to create multiple LLC's instead..
I would suggest you schedule a consultation to discuss the complexities of this with our sales tax experts. You can do that here: calendly.com/ledgergurus-sales-tax/?RUclips&
I'm just starting out selling through my online website in Buffalo NY. Is it recommended that I pay for something like Avalara for both calculating the tax, and remitting the tax seeing as I haven't even sold anything yet, nor do I know when I'll even sell enough to pay for that service?
Also, you had stated that I can't start charging tax to another state until I meet that threshold. But what happens if I am just under that threshold, and then over the course of the day multiple customers purchase items which push me far over the threshold? Obviously, I wouldn't have had my website setup to charge tax yet, so therefore, no tax would have been collected.
One other question if you don't mind. Lets say the threshold for a certain jurisdiction is $100,000. Does that start over annually, or is that over the life of what is made by my business for that jurisdiction? Thank you!
You may want to start out with a less expensive tool. Maybe look into Sovos or TaxJar.
When you see that you're starting to get close to the threshold in a state, pay attention so you know when to register. Also, different states have different requirements. You can see a full list at the end of our 10 Steps to Ensure Sales Tax Doesn't Burn Down Your Ecommerce Business guide. You can find that here: ledgergurus.com/portfolio/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/?RUclips&
The threshold is an annual threshold.
Excellent video, even Wix business plan provides Avalara. Is it a good buy ?
It's definitely the most robust of the sales apps we reviewed. You'll need to decide if it's worth the cost and if you need all that it does.
Thank you for such an awesome video, Kexin. Always killing it! Do you know if Sovos Taxify has resolved their connection issue with Shopify yet? And has any of your clients experienced complications when switching to a different software as their business need changes? Such as switching from Taxify to Avalara?
We don't have an update on the connection issue between Sovos and Shopify.
There are always a few bumps when switching software's because the setup is a little different with each of them. The customer service isn't great with Sovos or Avalara, so that can be frustrating. We hear some clients really have a hard time with Avalara because they feel like the customer service is awful and they can't get help. We have experienced the same thing until we found good reps with MRA (Managed Returns).
@@LedgerGurus Got it, thank you! Always appreciate the quality content you guys put out and looking forward to the next one.
Thank you very much for yor clear explanation.
You are welcome!
My state only doesn't require me to collect or report out-of-state sales taxes. I am cancelling my Avalara subscrtiption because my renewal went up 980%. I only njeed a sales tax calculator for my home state . My business is small so which tax app would you recommend?
TaxJar or Sovos are also good options. I encourage you to compare the different apps to see what will be the best fit for your business.
And every city in California is different. Sometimes multiple different jurisdictions in the same city.
That is true.
thank you! What are your thoughts on Shopify Tax (is this both a sales tax engine + filing)?
Shopify Tax is a sales tax engine, but NOT a filing tool. You would need something different to help you file.
@@LedgerGurus got it! are there any tools you'd recommend just for filing? or does this have to be done manually if your sales tax engine does not do it?
@@diatahealth849 It depends on the size of your business. TaxJar and Sovos are good for smaller ones, while Avalara is best for bigger ones.
Thank you so much for all of your informative videos. I have some questions and hoping to get reply from you. I am non US resident, and planning to launch first products on May with local entity. So, in this scenario when should I consider about the sales tax and will Amazon collect sales tax please ?
We can give you more individualized help specific to your situation in a consulting call. You can schedule to meet with us at ledgergurus.com/ecommerce-accounting-services/sales-tax/
Very Nice explanation . I just started retail arbitrage on amazon in Texas but I have no idea that whether should get the sales tax permit from Texas or not ? Can you help me understand this ?
If you are in the state of Texas, you have physical presence there and need to get a sales tax permit from Texas.
@@LedgerGurus thank you so much . This helps a lot for me
@@BinayBk-je3yoYou're welcome.
Excellent video. I Live in india. I have an e-commerce website offering phone cases (created using ecwid) to US & other western countries. Do I need to collect tax on my website? My website is a POD website, I will have my product made by sites like prodigi, printful once I receive an order. Please explain in simplest possible terms. I do not want to be involved in this tax thing
I cannot answer your question because there are nexus considerations that you haven't mentioned. Your best bet is to schedule a consultation with one of our sales tax experts and get your questions answered. You can do that by clicking on this link: calendly.com/ledgergurus-sales-tax/?RUclips&.
We have just over a million in sales, but growing. We also only have one product, a nutritional supplement. Which company do you recommend we use. My first inclination is TaxJar.
There's a lot more to answering that than we can put into a RUclips comment section. If you want detailed advice, we invite you to schedule a sales tax consultation with one of our experts. calendly.com/ledgergurus-sales-tax/?RUclips&
What do you recommend for a small online boutique business that just started in December 2022?
That depends on what your sales are. Unless you're growing really quickly, it's likely that the only state you have to worry about nexus in is your home state. You will need to collect and remit sales tax for customers in your state. You'll want to keep an eye on your sales as you get bigger, especially as you start approaching nexus in other states. For a really good idea of what to pay attention to, check out our free sales tax masterclass - ledgergurus.thinkific.com/courses/the-uncomplicated-truth-about-sales-tax
Thank you so much for all your videos! I have a question & hoping to get some clarification from you. Here is my situation - I was running my business as a sole proprietor and got my seller’s permit in July 13, 2022. I recently just got my LLC last March 6, 2023 (I’m about to apply for my seller’s permit for my llc this week)
Question: For fiscal yearly reporting, I know the reporting period is from July to June. Do I file my sales tax return for July 13, 2022 to march 5, 2023 and file another sales tax return for my LLC for the period of March 6 to June 30, 2023?? I’m so confused! Please help :(
Did the company open up a new sales tax account with the state for the LLC? Most of the time you can call the State and update the information on the company and keep the same account. If there are 2 accounts they need to file the final return for the sole proprietor and then file for the LLC when that return is due. If they just updated the company information than there should only be the one return to file.
Seller (me) = florida
Dropshipper = New Mexico
I am barely started so sales are low.
Do I only charge Taxes to my Florida costumers?
Yes. For a really good, in-depth explanation of sales tax for dropshippers, see this video - ruclips.net/video/suUqOj3bhvs/видео.html
Whats your opinion on sidr for automating the sales tax filing on Shopify?
I don't understand your question. I think there was a typo. Will you restate it?
@@LedgerGurus I just edited it😁 there was a bit of grammar wrong
@@Mrpersondjrhjsjsj Just retype your question because the editing doesn't show up on my end.
Does Stripe Tax report down to county, like Shopify? Would it collect Entertainment taxes etc on streaming service transactions?
It looks like it only reports on the state level. I suggest you contact Stripe customer service for these really specific questions.
Is taxjar $19 a month for all states? Or each state is $19?
Are you saying we can’t change the amount if it doesn’t match? On taxjar?
No, you can't change the amount on Taxjar. It starts at $19 for the service. You can see more here - www.taxjar.com/pricing
Thank you. I’m new to Shopify. Is it mandatory to collect tax from each state ? I didn’t have to do that with PayPal. Does that mean I have to get a tax ID from each state?
I appreciate your reply.
@@Neta4Christ Please watch our free sales tax masterclass. It will help you so much, and will answer this question, as well as many others - ledgergurus.thinkific.com/courses/the-uncomplicated-truth-about-sales-tax
Does anyone know a course or training for sales tax? I want to learn more on this topic.
You've come to the right place. We've created 2 sales tax courses and a free masterclass, all on sales tax. You can find them here - ledgergurus.thinkific.com/collections/sales-tax. The free masterclass goes over the basics and talks about what NOT to do when you're setting up your sales tax. The basic course covers the entire process, but goes lightly on the nexus analysis part. It's meant for sellers with nexus in 1-3 states. The premium course covers the same process but goes in-depth with how to do a nexus analysis and how to determine sales tax exposure and make decisions accordingly, as well as how to manage multiple states. It's geared for sellers with nexus in more than 3 states states or accountants who are trying to learn the process to do it with their clients. It covers the same process we use for our full-service sales tax clients. I hope that helps.
So, you only need a sales tax filing tool if you are selling directly online from your own website, but not if you are selling solely via a marketplace platform, is that correct?
Yes that’s our opinion!
I am using shopify selling drop shipping from Utha, but business is in Florida. I would be happy if you can help me with my small business. little sales for the moment. but all is shipped from Utah.
We can certainly help you. You can schedule a sales tax consultation here - calendly.com/ledgergurus-sales-tax/
Does Avalara work with Wix online stores? And does Avalara help us file the tax returns on that platform on time?
Avalara should, and yes it does.
It's been a year since the upload....has Taxify fixed its problem with Shopify (as was mentioned)?
We don't really work with Taxify anymore, so we're not familiar with the updates.
We use Sovos now, instead of Taxify. Same company, but different product.
What is the web of Taxify? And is for small / medium business?
The URL is sovos.com/sut/products/sovos-taxify/. And yes, it is for small/medium business.
Does Shopify handles all of this?
No. Shopify is not a marketplace facilitator like Amazon and eBay, and does not collect and remit for you. For more information, watch our free sales tax masterclass - ledgergurus.thinkific.com/courses/the-uncomplicated-truth-about-sales-tax?RUclips&
hi i have a shopify store, is there any shopify apps can help me to get the totals sales by location so i can file the sales tax ,thank you
Shopify has a sales tax report that you can use
@@LedgerGurus I am having difficulty setting up taxes by location (ie: Farmer’s Markets) Is this something you can help me with?
this is in Shopify-
@@pamkeeler993 Sure! You can schedule a consultation with one of our sales tax experts and they can show you how to do that. Click here to schedule - calendly.com/ledgergurus-sales-tax/
I ABSOLUTELY would not suggest avalara right now as is. I signed up for it based on this video and the customer service is abysmal. I am not exaggerating when I say it's the worst I've ever experienced. Also extremely poor user experience, they really need a design team. On the surface looks fine, ui looks good, but the user experience is just terrible. For example, why is there a 10 day period to accept the calculated tax return but no button to reject or recalculate? It was so odd that even customer service just expected there to be one and no one could answer why there wasn't one or how to fix your taxes then.
For anyone who starts experiencing issues with avalara, I would reach out to their customer care team. This doesn't necessarily change their very poor customer service, but they did assign me a new account manager at least so fingers crossed that I can get some of my issues resolved after 6 months and going through all their methods of contact.
We've noticed some issues with some of their services right now, but hopefully they'll get worked out soon.
Shopify representative confirmed to me they do not remit and submit sales tax for the seller. So just be aware.
That is true. Only marketplaces collect and remit sales tax for the sellers. Individual sites, like Shopify, do not.
$10,000 fee? For a small website? A beginner? A noob?
There are other options for small companies.