Virtual Address and Scanning Service Before Sales Tax Registration
Before you get registered for sales tax permits having a virtual address service to scan your mail will save you time, money, and frustration. This is especially important for foreign e-commerce sellers selling on one of the major platforms, Amazon, Walmart, eBay and also for U.S. sellers who may get overwhelmed with mail after sales tax registrations.
This is especially important when you get into compliance with sales tax after the June 2018 U.S. Supreme Court Case, Wayfair vs South Dakota. You will receive buckets of mail from each state and you will want to know which is urgent and important vs not urgent and not important.
Each State may Trigger up to 5 Letter Per Month in Mail After You Register for a Sales Tax Permit
Once you register for a sales tax permit in each state on average, you will receive, 5 letters per state per month for the first couple of months. Imagine getting registered in 20 states and receiving over 20 x 5 x 2 or 200 pieces of mail in the first 60 days! You would need to hire a part-time assistant just to sort and organize all that mail for you.
The easy solution is to use your business or home address and just sort through the mail yourself. If you are outside the U.S., you are likely never to receive the mail because most states don’t recognize foreign addresses or use the proper postage. There are some states that mail a code you will need to finish up your tax account in order to access your sales tax registration number. If you don’t ever receive that important piece of mail, you are going to call the department of revenue in that state. Hold time may be up to 2 hours!
Utilize a Virtual Address to Scan and Link Your Mail with Urgent Notifications
The solution is to have a professional virtual address service with scanning options BEFORE you apply for your sales tax permits.
Here are some of the features you should consider before engaging a virtual address and scanning service:
- A service that is familiar with applying for sales tax permits so they are able to recognize the really important mail vs the informational mail and bring it to your attention.
- A service with different levels of content scans and one you can grow and scale with over time.
- One that gives you the option to have unlimited company names to your account and to forward mail if possible.
- A lease or mail service agreement options
- Urgent email notifications for urgent mail that requires responses. See sample or urgent state mail below that you would want to see right away:
Here are a couple of case studies to help you make a better decision as to which service may be best for you:
E-commerce Seller: Scenario 1
You’re an Amazon FBA seller. You have stock is in 20 FBA states. You have recently determined you need to collect and remit sales tax. You are 1 year behind. You need sales tax permits in 20
states. The 20 permits being registered will trigger 5 letters from each state during the first 2 months. That is a total of 5 letters x 20 states x 2 months= 200 content scans (can you even imagine all of that coming to your office or home, ugh).
You must receive mail quickly to obtain your sales tax permits to update your tax settings in your various shopping carts including Amazon Seller Central to start collecting and remitting sales tax. Since you’re 1 year behind, you are receiving past sales tax returns, past due amounts for sales tax, penalties, and interest. Having immediate access to all your mail scanned and sorted for you based upon permits, regular scans and any urgent scans is a must.
Best Service Recommendation for Scenario 1:
Mail Scanning. Base price is $97.00 per month. Includes 50 content scans (up to 20 pages). You have 200, so 150 scans fall under the content scan overage. Your plan is $2 each for content
scan overage or 150 x $2.00= $300 additional fees over two months. After two months your mail will drop dramatically as you get caught up on past sales tax returns and are under the 50 content
scans per month.
E-commerce Seller: Scenario 2:
You’re an eBay Seller. You are shipping your packages from Texas. You have been selling for 1 year. You live in Florida where you have formed your LLC. You have sales tax nexus in two states,
Texas and Florida. You also have passed the economic threshold of 200 units in a calendar year in Georgia, Illinois, Indiana, and Kentucky. You now realize you need sales tax permits in 6 states.
Since you are behind 1 year that will trigger about 5 letters from each state during the first 2
months. That is a total of 5 letters x 6 x 2 months= 60 content scans.
Best Service Recommendation for Scenario 2:
Mail Scanning. Base price is $97.00 per month. Includes 50 content scans (up to 20 pages). You have 60, so 10 scans fall under the content scan overage. Your plan is $2 each for content scan
overage or 10 x $2.00 =$20 in additional fees over two months. After two months your mail will drop dramatically as you get caught up on past sales tax returns and are under the 50 content
scans per month.
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