SaaS tax compliance service

Clear definition and examples of SaaS (subscription access vs downloaded/perpetual license) and why classification matters. Explain nexus types (physical, employees/contractors, economic nexus) and common thresholds (give examples of thresholds and note that they vary by state and can change). State taxonomy: give a state-by-state snapshot (or a linkable table) showing whether SaaS is generally taxable, conditionally taxable, or generally non-taxable; include notable states (NY, TX, WA, FL, CA, MA, PA) with short notes. Explain partial taxation examples (Texas 80/20 data processing split) and bundling risks (implementation/training may be taxable when bundled with SaaS). Sourcing rules: guidance on destination vs origin, and how subscription billing periods and customer location affect situs. Marketplace facilitator & reseller considerations: how to determine collection responsibility. Recommended tech and process stack: use tax engines (e.g., Stripe Tax, TaxJar, Avalara), set product tax codes, automate registration tracking, reconcile tax collected vs remitted, schedule periodic nexus reviews, and secure exemption certificates for B2B customers. Audit preparedness checklist: registration documents, returns, exemption certificates, taxability analyses, tax code mappings, and a change log for product changes. Sample checklist for US LLC founders: initial nexus map, prioritize registration in states with high revenue, implement tax automation, update terms/invoices to show tax collected, consult a tax advisor for ambiguous states or large exposures. Representative state-specific notes to feature: New York: treats many SaaS offerings as taxable; sellers should register if economic or physical nexus exists. Texas: classifies certain SaaS/data processing as partially taxable (Texas guidance supports an 80% taxable allocation in some cases). Washington: often treats SaaS similarly to tangible software and taxes digital products/services broadly. Florida: historically non-taxable SaaS in many cases, but bundling and certain configurations can create tax exposure — verify with Florida Department of Revenue rulings. California: generally no state sales tax on services but bundled transactions, ancillary taxable items, and local use tax considerations require review; CA's $500k economic nexus threshold applies for sales/use tax sourcing rules relevant to businesses.