Avalara Helps Merchants Manage Business Licensing and Tax Registration

New Laws Mean New Business Licensing Requirements for Sellers

Avalara launched the new sales tax registration and business licensing service at a time when businesses, especially online sellers, need it most. The South Dakota v. Wayfair, Inc. ruling in June 2018 upended decades of established sales tax law. The Supreme Court ruled in favor of South Dakota, stating that given the power and prevalence of the internet, states could now enforce sales tax collection from remote sellers, rather than only those sellers with physical presence within state borders as previously established in the 1992 Quill ruling. 

To date, 27 states have adopted sales tax laws requiring businesses to use where they sell, not just where they are located, to determine compliance requirements. The first step for businesses is to determine where they have economic nexus, meaning an economic presence triggering an obligation to collect and remit, established by amount of gross sales or number of retail transactions within a given period.  Avalara provides an easy tool to help businesses determine their sales tax obligations. Next, as a prerequisite to collecting and remitting sales tax, businesses are required to apply for sales tax registration and, depending on the jurisdiction, obtain a business license.

How to Register for Sales Tax and Get a Business License with Avalara

Whether a business is just getting started or is already established, Avalara Licensing offers options for sellers of all sizes to efficiently obtain business and sales tax licenses:

• License Form Finder – Avalara researches and delivers the appropriate registration or licensing forms for completion and submission to the appropriate taxing authorities: $99 per location
• Sales Tax Registration – In most instances, Avalara manages all aspects of preparation and filing of sales tax registrations: From $199 per state
• Licensing and Registration – In most instances, Avalara manages all aspects of preparation and filing of business licenses and sales tax registrations: From $349 per location

“Like tax rates and rules, business licenses and tax registrations vary widely from state to state, and nuanced requirements are buried on government-managed websites, making it difficult for sellers to check off the first task in becoming compliant with new taxing jurisdictions,” said Marshal Kushniruk, EVP of Global Business Development at Avalara. “Our new service quickly and easily solves the onerous process of researching, acquiring, and managing business licenses and sales tax registrations, because let’s face it, online sellers should be laser focused on building their business and preparing for the next cyber holiday.”