The web is a source of significant revenue for many retailers. A strong online presence is essential to introducing products into existing and untapped markets. The challenge many struggle with is how to manage fulfillment once the transaction is completed. The costs associated with warehousing inventory, managing shipping, and customer service can be overwhelming for startup and small business retailers. Foreign companies are especially attracted to these services, since they replace the need to locate, obtain, staff, and manage warehousing operations abroad.
To help solve the problem, companies like Amazon offer third-party fulfillment services (e.g., Fulfillment by Amazon (FBA) services) which allow retailers that sell their products on larger, well-known retail sites to use their internal resources to store, pick, ship, and provide customer service. This is an attractive offering as it allows smaller retailers the ability to focus on products and sales and not worry about the rest. While this service solves a business challenge, it can create tax planning, filing, and compliance issues for the retailer.
BLS works with companies that use third-party fulfillment services to identify, plan for, and manage sales, use, and other tax filing requirements. Our team of experienced professionals can help you determine where nexus exists and ensure the proper filings and compliance work has been completed to be sure that all state tax laws are followed.
Our Third-Party Fulfillment Services Include:
- Nexus determination
- Sales and use tax compliance
- Sales tax registration by state
- Outsourced bookkeeping and accounting
- Financial statement preparation
- Tax planning and compliance
- Budgeting and forecasting
- Audit assistance and representation