Clearco is on a mission to empower ecommerce brands by supporting them as they scale their business. By partnering with Kintsugi, the top-rated sales tax app on the Shopify App Store, we’re helping ecommerce Shopify merchants stay compliant with varying state sales tax and providing a streamlined way to file their sales tax efficiently while maintaining multi-state obligations. Designed for ecommerce businesses, this seamless integration directly at the point of sale allows merchants to monitor and collect sales tax obligations efficiently. Kintsugi is helping ecommerce businesses, such as those funding with Clearco, to track sales tax expenses and gain access to sales tax information with an automation platform tailored to easily stay compliant with tax regulations. Kintsugi has a special offer for Clearco brands - they receive 50% off their first month with Kintsugi.

The Complexities of Sales Tax in the US

Since the South Dakota v. Wayfair ruling in 2018, ecommerce sellers have been facing significant challenges when it comes to multi-state tax obligations and seen major impacts in their cash flow. The ruling by the Supreme Court indicates that businesses, including ecommerce sellers, no longer have to have a physical presence in a state to be required to register, collect and remit sales tax to the designated taxing state. In previous years, ecommerce sellers were exempt from sales taxes across multiple state lines as states  could only require businesses to collect sales tax if they had a physical presence in the state, otherwise known as physical nexus determination. The sales tax nexus defines the connection between a business entity and a taxing jurisdiction. Until this nexus determination is established, the state cannot impose taxes from a businesses’ sales. Therefore, if an ecommerce business only sold its products online before the 2018 ruling, and had no physical presence in a state including inventory, workers, or regular trade show attendance, it was not required to collect sales tax from transactions made by customers  in that state. This previous rule significantly saved ecommerce brands revenue as well as shielded them from additional tax liabilities. Once the physical presence rule was overturned by the Supreme Court in 2018, U.S. states were allowed to enforce economic nexus, meaning businesses were required to collect and remit sales tax based on their sales activity in a state, often at a threshold of $100,000 in revenue or over 200 transactions.

Multi-State Sales Tax Impacts Business Growth

Faced with navigating the complexities of tax regulations across multiple jurisdictions, businesses now must comply with sales tax obligations once they meet a certain threshold of sales or number of transactions within a state. However, for growing ecommerce businesses who may be still gaining their footing with monitoring sales per state, losing track of each state’s sales tax obligations and permits is a foreseeable future. Not to mention that each state’s tax obligations vary, such as: 

• Sales threshold amounts to qualify
• Measurement dates for determining tax liability
• Registration deadlines to avoid penalties
• Types of sales that must be included (gross sales, retail sales, or taxable sales)

Navigating these complexities can be overwhelming for ecommerce brands, making it essential to have the right tools and support to ensure compliance and avoid costly mistakes. Keeping track of all these moving parts, while your ecommerce brand is rapidly growing with multiple strategies in play can seem like an impossible task for any accounting team. With this added layer of complexity to tax compliance and the tightened financial flexibility, it is more crucial than ever for businesses to have the necessary cash flow to cover these additional obligations. Luckily, sales tax automation platforms like Kintsugi are disrupting this looming headache for businesses, allowing them to put their sales tax on autopilot and scale with confidence. 

How Kintsugi Helps Ecommerce Brands Simplify Sales Tax

Kintsugi offers scaling ecommerce businesses automated ways to track, collect & remit their sales tax across various state and provincial jurisdictions. Focused on sales tax automation, Kintsugi’s platform automates and simplifies sales tax compliance across jurisdictions  for ecommerce businesses including registration for state sales tax, nexus determination, sales exposure monitoring for liability, and tax remittances & filings. Equipped with a sales tax solution, ecommerce brands can reduce their risk of running into penalties related to sales tax should they meet transaction or revenue thresholds within new jurisdictions. Kintsugi’s solution provides end-to-end sales tax support, helping businesses track and update their economic thresholds across states to ensure they are adhering to sales tax obligations while hosting an array of resources to support scaling businesses as they grow and expand into new markets — including sales tax guides for U.S. states and sales tax guides for U.S. cities.

When it comes to the changing taxing regulations, this time-consuming and tedious task may pose significant challenges for small businesses struggling to understand and keep up. With 36% of small businesses reporting financial cost of federal taxes is the largest burden posed to their business, it’s no surprise that tax season brings added stress. Ecommerce businesses may find themselves bracing for the complexities of filing tax returns and processing tax bills. In a world where business leaders should focus on growth tactics rather than tax season stress, having an automated solution such as Kintsugi to handle sales tax calculations and filings provides some much needed stress release and reprieve. Clearco’s funding solutions that will fund your tax bills this tax season, ecommerce brands can scale with confidence, free from unexpected financial burdens.

How This Partnership Benefits Ecommerce Brands During Tax Season

As strong advocates for the growth of ecommerce businesses, Clearco is proud to partner with Kintsugi to provide brands with enhanced support with sales tax. In partnership with the ecommerce funding solution, Kintsugi is providing brands with access to a platform that simplifies sales tax management and payments - at a discounted rate: All Clearco brands receive 50% off their first month with Kintsugi. Onboarding takes less than 3 minutes. Pricing starts at $100 per action per month. Ready to simplify sales tax? Learn how Kintsugi’s solutions and Clearco’s funding can support your growth.