Many retail businesses, especially small e-commerce stores, see 40-50% of their annual sales concentrated between Thanksgiving and New Year. Major shopping events like Black Friday, Cyber Monday, and the lead-up to Christmas can significantly boost revenue - but they can also create unexpected tax obligations.
This surge in sales often causes businesses to cross state economic nexus thresholds without even realizing it. The result? You may be required to start collecting and remitting sales tax in additional states as we enter the new year.
Unfortunately, many businesses are so focused on holiday operations that compliance takes aback seat. But failing to collect and remit sales tax when required can lead to costly penalties inthe long term.
January is the perfect time to act. Completing an economic nexus analysis by state will help you identify where you’ve crossed thresholds so you can register, collect, and remit sales tax without delay.
At Sales Tax Rx, we specialize in helping businesses navigate these compliance requirements. From economic nexus analysis to registration and filing, we’re here to ensure you stay compliant and avoid unnecessary headaches.
Ready to start 2025 with peace of mind? Let’s talk!