How Startups Can Avoid Sales and Use Tax Missteps

As startups grow and expand, they must comply with the ethical and tax laws of the state. Interestingly, taxation can be both an advantage and disadvantage for a company, which is why tax experts become so crucial for startups. In this episode, Stephen Bradshaw joins us to discuss key tax considerations for startups, including identifying when your goods or services are taxable, analyzing your risk exposure to sales tax, mitigating or minimizing your sales tax burden, and handling tax compliance if you are a scaling startup without a dedicated tax team.

Stephen, a Partner at Bennett Thrasher specializing in State and Local Tax, offers expert guidance to software companies on sales and use tax matters. His focus includes conducting nexus studies, advising on tax categorizations, negotiating voluntary disclosure agreements, preparing for diligence processes, and establishing best-practice procedures for automated sales tax software like Avalara. Stephen's insights have been featured in prestigious publications such as the Atlanta Business Chronicle, Accounting Today, Thompson Reuters, and the Georgia Society of CPAs.

Before joining Bennett Thrasher, he spent five years at Deloitte Tax, LLP in the Multistate Tax Services division, providing state income/franchise tax consulting, compliance, and ASC 740 (provision) services to major corporate clients.

Tune in!

What You Will Learn:

• [01:42] Stephen Bradshaw's insights on how to determine whether your services are taxable  

• [09:19] The process of understanding your level of risk exposure and compliance

• [14:50] Negotiating voluntary disclosure agreements, time and cost

• [18:43] Ways to minimize or mitigate sales tax exposure

• [25:04] Best practices for scaling startups who cannot afford to hire a sales tax team or staff

• [28:35] Instances where startups can put a hold on sales taxes

 Standout Quotes:

•  “If your product or services are simple, such as a Saas company, it is recommended to work with an advisor to help you figure out the right categorization of your products for taxation purposes.”- Stephen Bradshaw [04:35]

•  “Getting a tax exemption certificate is a great way to mitigate prior expenses.”- Stephen Bradshaw [21:01]

Let's Connect:

Stephen Bradshaw

LinkedIn: https://www.linkedin.com/in/stephenbradshawbt/

Website: https://www.btcpa.net/ 

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