10 reasons Why a Startup Corporation Should Register for Sales Tax

Sales tax can be a complex issue for startups. A lot of founders don’t know when or where they should be registering.

At the same time, not complying with the state tax laws can create penalties, interest, and waste a lot of time trying to get things fixed. That’s why the Kruze Sales Tax Team will evaluate your Sales Tax exposure and tell you which states to register in for sales tax. Remember, even SaaS companies may be responsible for paying sales tax. Then we’ll do the registrations and the regular filings after!

We’re big fans of educating our clients so we put together this list of ten reasons why a startup should consider whether to register for sales tax:

  1. Physical nexus: If a company has sales in a state where it has a physical nexus, such as an employee or a warehouse, it must register to collect and remit sales tax in that state.
  2. Economic threshold: Many states have an economic threshold, typically $100,000 in sales or 200 transactions, that triggers the obligation to register for and file sales tax returns.
  3. Compliance with state laws: Registering for sales tax can help businesses comply with state laws, which may require them to collect and remit sales tax even if they have a small amount of sales in the state.
  4. Anticipated fast growth: If a company anticipates fast growth, it may want to register for sales tax in advance to avoid penalties and interest in the future.
  5. Resale or exemption certificates: Some states require a company to register for sales tax before they can obtain a resale or exemption certificate, which can help them save on sales tax costs.
  6. Avoiding penalties and interest: Failure to register to collect and remit sales tax in a state where a company has nexus can result in significant penalties and interest.
  7. Building customer trust: Registering for sales tax and collecting it from customers can help build trust with customers, who may be more likely to purchase from a company that is transparent and compliant with state laws.
  8. Streamlining operations: Registering for sales tax can help streamline a company’s operations by automating the collection and remittance of sales tax, reducing the risk of errors and minimizing administrative burden.
  9. Protecting against audits: Registering for sales tax and maintaining compliance with state laws can help protect a company against audits and inquiries from state tax agencies.
  10. Staying ahead of the curve: Sales tax laws and regulations are constantly changing, and registering for sales tax can help companies stay ahead of the curve and ensure compliance with current laws.

Kruze’s Sales Tax Team is here for you. Got a sales tax notice you need help with? Even if you just want to ask questions and aren’t ready to do a Sales Tax Nexus evaluation yet.


We are the experts at helping seed/VC-backed Delaware C-Corps with their accounting and finances!

Talk to an experienced accountant, not a generic sales person

 Kruze Consulting
Alex Janeck
 Kruze Consulting
Edith Silva
 Kruze Consulting
Randy Hall
Viz AI

$250M+ VC Funding Raised

"I had a great experience working with Kruze Consulting when we raised Series A. They know what VCs need to see, and how to present a startup’s books and finances. If you are going to raise venture capital, you need experts like Kruze."
Chris Mansi

Chris Mansi


Startup Venture Capital Assistance

With former venture capitalists on staff, our team is here to help you navigate the fundraising process and manage your board of directors

 Kruze Consulting
Scott Orn
COO | Former VC
 Kruze Consulting
Healy Jones
VP FP&A | Former VC

Scale Remote Operations & Team

"Kruze has supported us above and beyond basic accounting needs by ensuring we have everything we need to expand and support our team wherever they may be located"
Zack Fisch

Zack Fisch

Head of Operations & Legal

Clients who have worked with Kruze have collectively raised over $15 billion in VC funding.

We set startups up for fundrising success, and know how to work with the top VCs.

 Kruze Consulting
Vanessa Kruze, CPA
Founder & CEO
Kruze Logo

Experienced team helping you

Our account management team is staffed by CPAs and accountants who have, on average, 11 years of experience.

 Kruze Consulting
Bill Hollowsky, CPA
VP of Accounting Services
 Kruze Consulting
Claudine Vantomme, CPA
 Kruze Consulting
Morgan Avery
SUT/R&D Sr. Tax Accountant
 Kruze Consulting
Beth Bassler
Controller, CPA
Protara Therapeutics

Grew from a 2-person startup to a NASDAQ listed public company.

"The Kruze team helped us grow from a 2-person startup to a NASDAQ listed public company in 2 years. We wouldn’t have gotten public without Kruze’s support. Anyone thinking of launching a startup should make Vanessa their first call!"
Jesse Shefferman

Jesse Shefferman


Kruze Logo

Get in Touch

Please help us connect with you

How can we reach you?

Our first response is typically via email, so please check your inbox.

Help us have a productive first consultation by providing some additional information.

What year was your startup incorporated?

What is your stage of funding?

(pick up from the list)

Approximately how much funding have you raised?

(please enter a dollar value such as 5000000)

Help us understand what you are looking for:

(Optional, click the ones you need)

Anything additional that you’d like to share?

Optional - if you’d like to share anything else to help us prepare for our consultation, please let us know. We are also happy to sign an NDA, just let us know.

Important Tax Dates for Startups

  Talk to a leading startup CPA