Finance Operators Outsource your sales tax nightmares + FIGS + Building your own factory & More.
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May 19, 2025 Sam Ross, CEO and co-founder of Numeral, dives into the complexities of sales tax compliance for e-commerce businesses following the Supreme Court’s Wayfair ruling. He explains the challenges of navigating tax jurisdictions and emphasizes how Numeral eases this burden. Sam also shares insights into fundraising and growth strategies, reflecting on the fast-paced venture capital landscape. Additionally, he discusses the intriguing dynamics of the apparel industry and how brands like FIGS adapt to market cycles while balancing premium branding with broader appeal.
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Complexity of E-commerce Sales Tax
- E-commerce sellers must navigate complex, decentralized sales tax laws with thousands of jurisdictions and varying nexus rules.
- The 2018 Supreme Court Wayfair ruling dramatically expanded states' power to require tax collection from out-of-state merchants.
Audit Nightmare of Sales Tax Noncompliance
- A brand featured on Shark Tank was audited and faced heavy back taxes, penalties, and interest for failing to comply with sales tax in multiple states.
- Ignoring sales tax obligations can lead to substantial financial losses and even personal liability for business owners.
Automate Sales Tax Compliance
- Automate sales tax compliance by connecting your sales platforms to a service that handles registration, filing, and remittance.
- Monitor physical mail notices for tax requirement changes and update filing frequencies promptly to avoid penalties.