Avalara/TaxJar setup support

Summary of relevant information (compressed, actionable): - Avalara (AvaTax & ECM) setup: Gather company info; add company via the setup wizard; validate addresses; add where you collect tax, locations and marketplaces; map products to Avalara tax codes; configure exemption-certificate settings (ECM/CertCapture); test company profile and transactions; activate company.

Avalara offers Managed Returns to submit filings, funding POA, schedule returns, run reconciliation reports and manage notices. - TaxJar setup & state settings: Configure your TaxJar account State Settings by adding states where you have nexus, enter filing frequency, legal business name and state tax ID; enter nexus established date to exclude prior sales if necessary; enable TaxJar API calculations for supported integrations so tax is calculated in real time; set shipping & handling taxability per-state.

TaxJar offers Nexus Insights to monitor economic and physical nexus and AutoFile/registrations and filing services to register and file returns on your behalf. - Nexus and state registration: Determine physical vs economic nexus for each state (inventory storage, employees, marketplace activity, sales thresholds).

Economic nexus thresholds vary by state — many states use $100K–$500K or transaction-count thresholds; consult state DORs. Once nexus exists, register for a sales tax permit in that state before collecting tax.

Establish a nexus start date (often the date of the activity that created nexus). Marketplace sales may or may not count towards thresholds depending on the state—check each state's rules.

TaxJar and Avalara both provide nexus monitoring tools. - Filing frequency & returns: Filing frequency (monthly/quarterly/annual) is assigned by the state and should be entered in your tax software; incorrect filing frequency can cause missed deadlines.

Both Avalara Managed Returns and TaxJar AutoFile manage filing schedules, remittance, and reconciliation, and can handle state-specific filing nuances. - Exemption certificates: Avalara provides Exemption Certificate Management (ECM) and CertCapture to request, validate, store and report exemption certificates and link them to transactions.

TaxJar provides guidance on resale/exemption certificates and may offer certificate-management workflows; verify storage/validation features in each product if certificate handling is material to your business. - Integrations & platforms: Both solutions offer prebuilt integrations with ecommerce platforms and accounting systems (Shopify, WooCommerce, BigCommerce, Amazon/Fulfillment by Amazon considerations, QuickBooks Online/Desktop, NetSuite, Stripe, Adobe Commerce).

Key setup tasks include: connecting the integration, mapping items to tax codes, validating customer addresses, enabling real-time calculations (API), testing transactions, and reconciling back-office records.

FBA/third-party logistics can create nexus due to inventory storage — review inventory location reports (e.g., Amazon Inventory Event Detail). - Common pitfalls: Not registering promptly after hitting nexus; failing to count marketplace and exempt sales correctly toward thresholds; mis-mapped products/tax codes leading to incorrect taxability; not storing/validating exemption certificates; wrong filing frequency; not enabling real-time calculations for integrations; not testing before going live; not reconciling returns to accounting records.

Recommended implementation checklist and timeline (high-level):

Summary of relevant information (compressed, actionable):

- Nexus and state registration: Determine physical vs economic nexus for each state (inventory storage, employees, marketplace activity, sales thresholds). Economic nexus thresholds vary by state — many states use $100K–$500K or transaction-count thresholds; consult state DORs.

Once nexus exists, register for a sales tax permit in that state before collecting tax. Establish a nexus start date (often the date of the activity that created nexus).

Marketplace sales may or may not count towards thresholds depending on the state—check each state's rules. TaxJar and Avalara both provide nexus monitoring tools.

• Avalara (AvaTax & ECM) setup: Gather company info; add company via the setup wizard; validate addresses; add where you collect tax, locations and marketplaces; map products to Avalara tax codes; configure exemption-certificate settings (ECM/CertCapture); test company profile and transactions; activate company. Avalara offers Managed Returns to submit filings, funding POA, schedule returns, run reconciliation reports and manage notices.
• TaxJar setup & state settings: Configure your TaxJar account State Settings by adding states where you have nexus, enter filing frequency, legal business name and state tax ID; enter nexus established date to exclude prior sales if necessary; enable TaxJar API calculations for supported integrations so tax is calculated in real time; set shipping & handling taxability per-state. TaxJar offers Nexus Insights to monitor economic and physical nexus and AutoFile/registrations and filing services to register and file returns on your behalf.
• Filing frequency & returns: Filing frequency (monthly/quarterly/annual) is assigned by the state and should be entered in your tax software; incorrect filing frequency can cause missed deadlines. Both Avalara Managed Returns and TaxJar AutoFile manage filing schedules, remittance, and reconciliation, and can handle state-specific filing nuances.
• Exemption certificates: Avalara provides Exemption Certificate Management (ECM) and CertCapture to request, validate, store and report exemption certificates and link them to transactions. TaxJar provides guidance on resale/exemption certificates and may offer certificate-management workflows; verify storage/validation features in each product if certificate handling is material to your business.
• Integrations & platforms: Both solutions offer prebuilt integrations with ecommerce platforms and accounting systems (Shopify, WooCommerce, BigCommerce, Amazon/Fulfillment by Amazon considerations, QuickBooks Online/Desktop, NetSuite, Stripe, Adobe Commerce). Key setup tasks include: connecting the integration, mapping items to tax codes, validating customer addresses, enabling real-time calculations (API), testing transactions, and reconciling back-office records. FBA/third-party logistics can create nexus due to inventory storage — review inventory location reports (e.g., Amazon Inventory Event Detail).
• Common pitfalls: Not registering promptly after hitting nexus; failing to count marketplace and exempt sales correctly toward thresholds; mis-mapped products/tax codes leading to incorrect taxability; not storing/validating exemption certificates; wrong filing frequency; not enabling real-time calculations for integrations; not testing before going live; not reconciling returns to accounting records. Recommended implementation checklist and timeline (high-level):

Determine nexus exposure (use vendor nexus tools + review sales and inventory locations).

Collect required company/state info and register for sales tax permits in states with nexus.

Create company in tax platform (AvaTax/TaxJar)

add locations, marketplaces, nexus states, and filing frequencies.

Map products to tax codes and configure shipping & handling taxability; set up exemption-certificate workflows.

Connect platform integrations (Shopify/BigCommerce/WooCommerce/ERP/accounting systems), enable API calculations, and run end-to-end tests of transactions.

Establish nexus start dates in software and exclude pre-nexus sales if needed; configure filing (AutoFile/Managed Returns) and remittance funding (submit POA as required).

Monitor nexus alerts, rate/taxability changes, and maintain certificate files; reconcile monthly and annually. Practical recommendations for US LLC owners

- Prioritize identifying where you store inventory (FBA/3PL) and monitor those states closely for nexus. - Register before collecting tax in a state and set the correct filing frequency in your tax automation tool. - Use exemption-certificate management (ECM/CertCapture or TaxJar workflows) to reduce audit risk and keep certificates organized. - Enable real-time calculations for ecommerce integrations and test transactions before going live. - Consider letting a vendor handle registrations and AutoFile/Managed Returns if you sell in many states or use marketplaces; it reduces administrative risk and penalties.