Question: How is TaxCloud different than other providers when working with smaller businesses? It seems like many tax services want to work with only large companies.

Answer: Thousands of small businesses use TaxCloud. Typically, they have fewer than thirty employees, less than $5 million in annual revenue and physical nexus in only one state. Their customers are located throughout the country.

Following the Supreme Court’s Wayfair decision in June 2018, and states’ subsequent legislation on economic nexus, many of these businesses find themselves with a sudden legal obligation to collect sales tax and file tax returns in additional states. These merchants turn to TaxCloud because we address their biggest concerns:

  • Accuracy
  • Cost
  • Ease of integration

As a Certified Service Provider in 25 states, businesses know they can trust TaxCloud to provide accurate information. After all, 25 independent departments of revenue tested TaxCloud’s tax engine for accuracy and reliability. That’s why those states provide indemnification to TaxCloud’s merchants for tech-related errors or omissions. But that doesn’t mean we only provide service in our 25 Member States. Not at all. TaxCloud offers services nationwide, providing all of our merchants with the following benefits:

  1. Real-time delivery of sales tax rates for every jurisdiction in the United States
  2. Automated application of item-level product and service exemptions
  3. Automated application of exemptions during occasional sales tax holidays
  4. Automated updates to tax codes, rates, and rules
  5. Automated monthly tracking of gross sales, exempt sales and taxable sales in every state
  6. Easy-to-use and downloadable reports detailing tax proceeds due in all state, county, city, and special tax jurisdictions­
  7. Optional automated monthly filing of returns and remittance of tax proceeds due (based on account configuration)
  8. Automated tracking of the various states’ thresholds for economic nexus (including automated emails when you approach or exceed such thresholds in any state)
  9. Management of state correspondence, including notices and audit inquiries (if our automated monthly filing service is enabled)

“Businesses know they can trust TaxCloud to provide accurate information.”

In addition to providing accuracy and reliability, TaxCloud understands the importance of affordability. We believe a great service is irrelevant if no one can afford it. That’s why we deliver the best value in the industry. For example, thousands of small businesses use TaxCloud for free under our Small Business Safe Harbor provision. To qualify for our Small Business Safe Harbor, a business must:

  1. Collect sales tax in all 25 of our Member States
  2. Generate less than $50,000 in monthly sales
  3. Have nexus in no more than one state outside of our 25 Member States

We can do this because the states pay us a small commission for the taxes we remit on merchants’ behalf. Other tax services may receive this commission too, but they charge merchants in addition to receiving state compensation. Not TaxCloud. We pass the savings on to you!