E-commerce compliance + accounting package

Business formation & registration: choose appropriate entity (LLC, S Corp, etc.) and register with your state; obtain local business licenses and seller’s permits where required. (IRS guidance: small-business resource center.)- Sales tax & economic nexus (Wayfair): After South Dakota v.

Wayfair (2018) states may require remote sellers to collect sales tax when sales exceed each state’s economic nexus thresholds (often a $100K or $200K+ annual sales threshold and/or transaction-count triggers).

States differ—thresholds, periods, and whether marketplace sales count vary by state. This means many e-commerce sellers must register and remit in multiple states.

Use a nexus assessment and consider automation or outsourcing. (Post-Wayfair analysis and state variability noted in Tax Adviser/Tax Foundation/Avalara materials.)- Marketplace facilitators: Most states now have marketplace facilitator laws requiring large marketplaces (Amazon, Etsy, etc.) to collect and remit sales tax on behalf of third-party sellers, but rules and exclusions vary by state.

Sellers should confirm whether marketplaces collect tax for their sales, and whether marketplace sales count toward the seller’s nexus thresholds.- State registration & examples: State revenue departments (for example, California’s CDTFA) administer sales and use tax registration, rates, and filing.

Register in each state where nexus is established. Keep track of taxability differences for goods vs digital products and sourcing rules (origin vs destination).- Bookkeeping & accounting best practices for e-commerce: - Maintain a chart of accounts tailored for e-commerce (separate revenue streams by channel, shipping income, discounts, refunds). - Track inventory and COGS closely (periodic/perpetual inventory methods); reconcile inventory, marketplace payouts, and merchant processor statements to your ledger. - Reconcile multi-channel sales (Shopify, Amazon, eBay) and fees; use software or middleware that pulls gross sales, fees, refunds, and net payouts to avoid mismatches. - Track sales tax collected by channel and remit by jurisdiction; maintain exemption certificates. - Use accounting software (QuickBooks, Xero, or e-commerce specialized providers) and consider a tax engine or outsourced filing for multi-state sales tax. - Payroll and employment taxes: if you have employees, set up payroll and remit payroll taxes in states where you have payroll presence.- Federal tax filing: follow IRS guidance for small businesses—single-member LLCs may report on Schedule C; multi-member LLCs and corporations have different filing obligations.

Keep accurate records to support deductions and filings.- Data privacy & website policies: publish clear Terms of Service, Privacy Policy, cookie/tracking disclosures, and refund/return policies. California’s CPRA/CCPA (and many state privacy laws) impose consumer rights and business obligations—monitor state privacy law developments and prepare opt-out/DO-NOT-SALE mechanisms where required.- Payment processing & PCI DSS: Use PCI DSS–compliant payment processing and follow merchant security guidance (encryption, secure storage, limited card-data retention) to reduce risk and liability for cardholder data breaches.- FTC and consumer protection: follow FTC advertising and marketing rules (truthful claims, clear pricing, email marketing compliance with CAN-SPAM) and FTC guidance on protecting customers’ personal data and guarding against scams.Recommended practical next steps for a US e-commerce owner / LLC founder:

Business formation & registration: choose appropriate entity (LLC, S Corp, etc.) and register with your state; obtain local business licenses and seller’s permits where required. (IRS guidance: small-business resource center.)- Sales tax & economic nexus (Wayfair): After South Dakota v.

Wayfair (2018) states may require remote sellers to collect sales tax when sales exceed each state’s economic nexus thresholds (often a $100K or $200K+ annual sales threshold and/or transaction-count triggers).

States differ—thresholds, periods, and whether marketplace sales count vary by state. This means many e-commerce sellers must register and remit in multiple states.

Use a nexus assessment and consider automation or outsourcing. (Post-Wayfair analysis and state variability noted in Tax Adviser/Tax Foundation/Avalara materials.)- Marketplace facilitators: Most states now have marketplace facilitator laws requiring large marketplaces (Amazon, Etsy, etc.) to collect and remit sales tax on behalf of third-party sellers, but rules and exclusions vary by state.

Sellers should confirm whether marketplaces collect tax for their sales, and whether marketplace sales count toward the seller’s nexus thresholds.- State registration & examples: State revenue departments (for example, California’s CDTFA) administer sales and use tax registration, rates, and filing.

Register in each state where nexus is established. Keep track of taxability differences for goods vs digital products and sourcing rules (origin vs destination).- Bookkeeping & accounting best practices for e-commerce:

• Maintain a chart of accounts tailored for e-commerce (separate revenue streams by channel, shipping income, discounts, refunds).
• Track inventory and COGS closely (periodic/perpetual inventory methods); reconcile inventory, marketplace payouts, and merchant processor statements to your ledger.
• Reconcile multi-channel sales (Shopify, Amazon, eBay) and fees; use software or middleware that pulls gross sales, fees, refunds, and net payouts to avoid mismatches.
• Track sales tax collected by channel and remit by jurisdiction; maintain exemption certificates.
• Use accounting software (QuickBooks, Xero, or e-commerce specialized providers) and consider a tax engine or outsourced filing for multi-state sales tax.
• Payroll and employment taxes: if you have employees, set up payroll and remit payroll taxes in states where you have payroll presence.- Federal tax filing: follow IRS guidance for small businesses—single-member LLCs may report on Schedule C; multi-member LLCs and corporations have different filing obligations. Keep accurate records to support deductions and filings.- Data privacy & website policies: publish clear Terms of Service, Privacy Policy, cookie/tracking disclosures, and refund/return policies. California’s CPRA/CCPA (and many state privacy laws) impose consumer rights and business obligations—monitor state privacy law developments and prepare opt-out/DO-NOT-SALE mechanisms where required.- Payment processing & PCI DSS: Use PCI DSS–compliant payment processing and follow merchant security guidance (encryption, secure storage, limited card-data retention) to reduce risk and liability for cardholder data breaches.- FTC and consumer protection: follow FTC advertising and marketing rules (truthful claims, clear pricing, email marketing compliance with CAN-SPAM) and FTC guidance on protecting customers’ personal data and guarding against scams.Recommended practical next steps for a US e-commerce owner / LLC founder:

Run a nexus and sales-tax exposure assessment (identify states with economic nexus and whether marketplace sales count). Register where required.

Confirm whether marketplaces collect/ remit sales tax for your sales; if not, configure your storefront to collect appropriate sales tax and implement a tax engine or outsourced filing.

Implement an e-commerce-aware chart of accounts and bookkeeping workflow

connect channels, reconcile payouts and fees, track inventory & COGS, and run monthly reconciliations.

Ensure website has TOS, Privacy Policy, returns/refunds policy, and cookie consent where needed; review CCPA/CPRA obligations if you do business with CA residents or meet thresholds.

Use PCI-compliant payment processors and follow merchant security recommendations. Maintain backups and evidence of compliance steps.

Engage a CPA experienced in e-commerce to set up sales-tax processes, federal/state filings, and bookkeeping automation where appropriate.