How Rareform cut unnecessary sales tax spend after leaving Avalara

Industry

Sustainable Accessories & Apparel

Location

Los Angeles, California

Website

rareform.com

Integration

Shopify, QuickBooks Online

Migrating from

Avalara

Introduction

One-of-a-kind products. One too many filings.

Rareform’s Shark Tank appearance triggered nexus obligations across roughly 30 states almost overnight. Lorén, then the company’s sole finance resource, was left to piece it together manually.

Avalara was the first solution she turned to. And for four years, returns got filed. But the bills kept climbing and support was painfully slow.

When a state notice arrived, it could mean hours of research and several rounds of follow-up just to get a clear answer. For a lean team managing both DTC and B2B sales, that friction compounded.

“The customer service at Avalara was not the best. It would usually take us a while to get a response, and there would be multiple back-and-forths to try to resolve any question.”

Solution

The SST savings were always there. TaxCloud unlocked them.

Frustrated by another filing bill that felt out of proportion to the work being done, Lorén started researching Avalara alternatives. That search led her to the Streamlined Sales Tax (SST) program, and she found TaxCloud’s name on the small list of Certified Service Providers (CSP).

“I learned about SST and then looked up the CSP agreement and saw your guys’ name on there. Avalara was on there too — but they actually hid that information from us.”

When she raised it with Avalara, they offered to work SST savings into an upcoming renewal. But it was already too late.

“Just on principle, I was like — okay, I’m switching.”

TaxCloud was implemented across their Shopify storefronts for DTC sales and QuickBooks Online for B2B, where larger wholesale orders are managed. From the sales process through onboarding and beyond, the experience was a sharp contrast to what came before.

And switching from Avalara took less than two weeks. The process was mostly automated, handled by Rareform’s accounting manager without disruption. “Migrating from Avalara wasn’t a hurdle that we had to think about with TaxCloud, so it was kind of a no-brainer to switch.”

“It felt very refreshing coming from Avalara. The onboarding and support process has been great. And TaxCloud really feels like an ethical company that wants to partner with other companies and wants what’s best for them — a mutually beneficial partnership.”

Results

Fewer filings. Lower costs. And more runway for growth.

Since switching to TaxCloud and enrolling in SST, Rareform’s relationship with sales tax has fundamentally changed.

• Fewer filings. Annual returns dropped from ~300 to ~120 — nearly 60% fewer, driven entirely by SST consolidation. “Just on managing returns and reconciling payments, TaxCloud is way simpler. Plus it’s a significant amount of savings with half the number of returns.”
• Savings reinvested in growth. Fewer returns means fewer filing fees — and for Rareform, that money goes straight back into the business. “Truly the reduction in cost has been a huge one for us. It has allowed us to invest that money into growing the business instead.”
• Faster support. State notices that previously triggered multiple rounds of back-and-forth with Avalara now get resolved with a single email. “Once I send off whatever question I have, I have full confidence it’s going to be answered quickly. For me, that’s huge.”
• No more mental overhead. The compliance anxiety that came with managing 30+ states across two channels is gone entirely. “I don’t think about sales tax at all now, which I love.”
• Full visibility across every channel. For a business managing DTC and B2B sales across 30+ states, knowing what’s filed, what’s pending, and what’s coming next matters. “I have a lot more confidence knowing that everything is correct — we can easily see all of the payments and the tracking, so we know everything is taken care of.”
• B2B exemption tracking, simplified. Managing exempt wholesale customers used to require a separate manual process. With TaxCloud, exemptions are tracked directly alongside DTC sales in one place. See how TaxCloud handles exemption certificate management.

Looking ahead

No more compliance baggage. Just room to grow.

With compliance costs cut and leadership attention freed up, Rareform is expanding its sustainability mission beyond billboard vinyl into event signage, stadium graphics, and other post-campaign materials.

And Lorén has become an advocate of the Streamlined Sales Tax program — telling other founders that SST certification is a differentiator most compliance vendors simply can’t match.

“I think you have a really great value prop, especially being SST certified. Other companies don’t have that. I couldn’t think of one reason to not switch over.”