# Sales Tax Filing: Quick Decision Guide

## TL;DR for Stylify

**Use TaxJar + Stripe Tax. Setup takes 2 clicks. Cost: $35 per filing. Zero manual work after setup.**

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## Quick Comparison Matrix

| Option | Monthly Cost | Setup Time | Manual Work | Best For |
|--------|-------------|-----------|------------|----------|
| **TaxJar + Stripe Tax** ⭐ | $12–$60 (variable by states filed) | 2 clicks | 0 hrs/month | Stylify now |
| Avalara | $100–$300 | Sales call + dev integration | 0.5 hrs/month | 10+ states or international |
| Anrok | $500–$1,000 | Sales call + API setup | 0 hrs/month | $500K+/month revenue |
| DIY (Manual) | $0–$50 | 4 hours | 2–3 hrs/month | Single state only (high risk) |
| CPA Service | $300–$2,000 | 1 week onboarding | 1 hr/quarter | Audits, cleanup, strategy |
| Lemon Squeezy MoR | Embedded in 5% + $0.50 fee | Rip-and-replace | 0 hrs/month | $100K+/month only |

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## Why TaxJar + Stripe Tax for Stylify?

1. **Lowest cost at your revenue:** $35/filing × 4 filings = $140/year (Texas only)
2. **Already integrated:** Stripe Tax is live. No rip-and-replace.
3. **Fully automated:** After 2-click setup, zero manual overhead.
4. **Scales affordably:** Even at 10 states, cost is $4,200/year (still lowest option).
5. **Audit-ready:** TaxJar generates compliance reports automatically.

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## Setup Steps (30 Minutes)

### Step 1: Create TaxJar Account
- Go to taxjar.com
- Sign up (free account)
- Add payment method

### Step 2: Connect to Stripe Tax
- Log into Stripe Dashboard → Tax
- Find "Filing Partners" section
- Click "Connect to TaxJar"
- Authorize (OAuth)

### Step 3: Verify Connection
- TaxJar should see all Stripe Tax transactions within 24 hours
- Check TaxJar dashboard → Transactions tab

### Step 4: Set Reminder
- Calendar reminder: Check TaxJar monthly for filing deadlines
- TaxJar will email notifications, but verify dates

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## Key Numbers (Stylify Financial Context)

### Texas (Single State, Quarterly Filing)
- Annual filings: 4
- Cost per filing: $35
- **Annual cost: $140**

### Texas + 4 States (Quarterly)
- Annual filings: 5 states × 4 quarters = 20
- Cost per filing: $35
- **Annual cost: $700**

### Texas + 9 States (Monthly)
- Annual filings: 10 states × 12 months = 120
- Cost per filing: $35
- **Annual cost: $4,200**

Even at 10-state monthly filing, TaxJar is 2–5× cheaper than competitors.

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## Important: Texas SaaS Tax Rules

**Texas taxes SaaS at 80% of the charge (20% exemption is built-in).**

**Action item:** Verify Stripe Tax is configured with this rule. If Stripe Tax is set to 100% taxability, you're over-collecting and face audit risk.

How to check:
1. Stripe Dashboard → Tax → Settings
2. Look for Texas rule → should show 80% taxable
3. If not configured, contact Stripe support immediately

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## When to Switch to Avalara/Anrok

- **Avalara:** 10+ states OR $500K+/month revenue
- **Anrok:** Expanding to EU/Canada OR $500K+/month with complex tax logic

Until then, TaxJar is financially optimal.

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## FAQ

### Q: Why not just use Stripe Tax without a filing partner?
**A:** Stripe Tax only calculates and collects tax. It doesn't file returns or remit to states. You still need a filing solution. TaxJar is that solution.

### Q: What if I scale to 50 states someday?
**A:** TaxJar still works. Cost scales to ~$21K/year (50 states × 12 months × $35). At that scale, Avalara becomes competitive (~$500–$1,000/month). But you'll have bigger problems to solve at $500K+/month revenue anyway.

### Q: Can I do this myself without TaxJar?
**A:** Technically yes, but:
- 408 tax rate changes in H1 2025 alone
- Each state has different forms, deadlines, filing methods
- One missed deadline = penalties + interest
- Audit risk is uninsurable at $10K–$50K/month revenue
- Your time is worth $100+/hour → DIY becomes irrational

### Q: What about international expansion?
**A:** Migrate to Anrok for unified VAT/GST + US sales tax handling. TaxJar is US-only. Switch when you enter EU/Canada/other VAT jurisdictions.

### Q: Do I need a CPA?
**A:** Not for ongoing filing. TaxJar handles that.
Use a CPA for:
- Annual tax strategy review ($500–$1,000 / year)
- Audit defense (if triggered)
- Cleanup of past filing errors

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## Implementation Timeline

| Timeframe | Action |
|-----------|--------|
| **Day 1** | Verify Stripe Tax TX SaaS exemption (80% rule) |
| **Day 2** | Create TaxJar account |
| **Day 3** | Connect Stripe Tax to TaxJar |
| **Day 4** | Add payment method to TaxJar |
| **Day 5** | Verify TaxJar sees Stripe Tax transactions |
| **Day 7** | Document current annual sales by state |
| **Day 10** | Create nexus tracking spreadsheet (update monthly) |
| **Day 10** | Set calendar reminders for filing deadlines |

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## Document Index
- Full research: `documents/SaaS_Sales_Tax_Filing_Options_Research.html`
- Texas-specific guide: Sections 10 in full research doc
- Implementation checklist: Section 11 in full research doc