Massachusetts’s Attempt to Retroactively Collect Sales Tax Results in Lawsuit

Massachusetts’s Attempt to Retroactively Collect Sales Tax Results in Lawsuit

Since June 2018, there has been a surge of legislation and corresponding litigation around the implementation of new sales tax laws. While many states are implementing new laws that go into effect this year, others have had economic nexus laws in place since well before the Wayfair ruling. Massachusetts is one of those states, having…

How Marketplace Facilitator Laws Impact Online Sellers

How Marketplace Facilitator Laws Impact Online Sellers

In recent years, ecommerce and the sales tax implications of running such a business have become significantly more intricate and complex. Where once physical nexus laws and a limited number of outlets on which to sell goods made the process relatively simple, there are now dozens new regulations, laws and requirements, all of which vary…

Surviving a Sales Tax Audit

Surviving a Sales Tax Audit

There are few five letter words feared by small business owners as much as “audit”. Especially for business owners who have been careful in their processes, recording all sales, logging everything, and maybe occasionally forgetting to document something, it’s frustrating and terrifying to get that notice. But with the right preparation, and a keen understanding…

How the Wayfair Decision Creates Extra Burden in NOMAD States

How the Wayfair Decision Creates Extra Burden in NOMAD States

For the 45 out of 50 states that have some form of sales tax, the June Supreme Court decision in South Dakota v. Wayfair, Inc. was a watershed moment – overturning more than 25 years of precedent that kept them from collecting sales tax on online sales from out of state. The original Quill ruling…

Selecting the Right Business Structure for Your Small Online Business

Selecting the Right Business Structure for Your Small Online Business

Few decisions will have as big of an impact on the taxes you pay and regulations you must follow as the business structure of your online company. When starting an online business, you should strongly consider consulting with a lawyer for advice as to the best structure. However, you can do some in-depth research beforehand…

How to Avoid Misclassification of Your Ecommerce Products for Sales Tax Purposes

How to Avoid Misclassification of Your Ecommerce Products for Sales Tax Purposes

One of the most complicated aspects of a small business to navigate is taxes, including sales tax. Increasing this challenge is the fact that different types of products each have unique sales tax rates depending on their classification. This is why many ecommerce companies have misclassified products that lead to incorrect sales tax calculations. Here…