Sales Tax is Complex—and It May Be Threatening Your Bottom Line
Everyone tells new business owners they need to first find a good attorney, banker, or CPA, and they are all wrong.
The answer of “attorney, banker, and CPA” is rattled off before the advisor even knows what type of business is being established. This conventional wisdom is completely outdated.
If you are a company launching a retail business, taxable service, or a SaaS product, whether online or in a physical space, you need a sales tax advisor before your very first sale.
Here is why:
1. Sales Tax Comes Before Profit
Income tax is about reporting your profits at the end of the year. Sales tax does not wait. It is due the moment you collect it from your customer.
2. Compliance Is a Moving Target
Sales tax is not just complex. It is constantly changing. Rates, rules, and nexus thresholds shift from state to state.
3. Growth Amplifies the Problem
The faster you scale, the faster your exposure multiplies. Expanding into new states, new channels, or new product lines can trigger dozens of new sales tax obligations overnight. Without a strategy in place, growth becomes a liability instead of an asset.
The Bottom Line
Sales tax is often the forgotten stepchild of financial planning until it shows up at your door with an audit. By then, it is too late.
A sales tax advisor is not a nice-to-have. For retail, e-commerce, and multi-state businesses, it is the most critical first call you should make.
So, the next time someone says, “You need a lawyer, a banker, and a CPA,” smile politely. Then add:
“…and a sales tax expert before your first sale.”
👉 Your Turn:
Business owners, when you started out, who gave you the best advice and who gave you outdated advice?
About Davis Davis & Harmon LLC
Davis Davis & Harmon LLC is a national sales tax advisory firm headquartered in Dallas, Texas, with a mission to deliver world-class sales and use tax solutions to complex organizations. The firm specializes in audit defense, refund recovery, and compliance strategy, serving Fortune 1000 clients across industries. With more than 30 years of expertise, Davis Davis & Harmon is the go-to partner for navigating the complexities of sales tax. Learn more at www.ddhtax.com.
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