Why E-Commerce Businesses Should Work with a Tax Professional

Why E-Commerce Businesses Should Work with a Tax Professional

While your e-commerce business might feel different from a traditional brick and mortar business, the law and IRS will treat you in much the same manner. In fact, you might have additional regulations that you are subject to. E-commerce businesses should work with a tax professional to make sure that they are on top of their tax obligations and prepared for the expenses that they might incur.

Get Things Right

One of the biggest reasons why e-commerce businesses should work with a tax professional is to benefit from their expertise. Tax pros know the law inside and out, which makes it much faster to have them prepare your taxes and help with tax planning. Because sales tax rates online are constantly changing, it makes it even more critical to work with a professional to avoid fees and fines that can occur from getting it wrong.

How E-Commerce Businesses Are Different

E-commerce tax requirements are constantly changing, and even if you have experience collecting sales tax in the past you might be unprepared for doing so digitally. E-commerce businesses should work with a tax professional to ensure they do not make the most common compliance mistakes, which include:

  • Not collecting tax at all and not filing as a result
  • Confusing the collection rules for different states and not submitting the taxes to the right place at the right time
  • Reporting the wrong tax breakdowns to the different states or the IRS

Because things can vary across state lines, there could be 50 different sets of sales tax regulations that you need to understand depending on where you sell your products online. We can help properly collect sales tax based on a variety of factors, including the physical location of your business, the location of the sale, any affiliates who might also be selling your products and more. E-commerce businesses should work with a tax professional like MKS&H to ensure that they are on top of the latest laws and regulations and ready to file correctly and on time in the future. We work with businesses of every size and in every industry.

Get Updated Bookkeeping and Accounting Records with Help from MKS&H

MKS&H provides tax and accounting services to businesses of every size and in every industry. We can work with you to determine the best way to update your records, plan for the future, budget and more. Contact us today for a consultation.

About MKS&H: McLean, Koehler, Sparks & Hammond (MKS&H) is a professional service firm with offices in Hunt Valley and Frederick. MKS&H helps owners and organizational leaders become more successful by putting complex financial data into truly meaningful context. But deeper than dollars and data, our focus is on developing an understanding of you, your culture and your business goals. This approach enables our clients to achieve their greatest potential.

Like what you read? Sign-up for our C-Suite Spotlight Program.

About Author


MKS&H is committed to providing personalized tax and accounting services while developing a deep understanding of you, your culture, and your business goals. Our full view of financial systems and the people behind them allow us create and evolve the best solution that will help you and your business thrive. The accounting experts and consulting professionals at MKS&H work together to help you achieve the financial results you want.

Related posts

LLC vs. S Corp for Tax Purposes

When it comes to structuring your business, the choice between forming a Limited Liability Company (LLC) or an S Corporation (S Corp) can significantly impact your tax liabilities. Both entities offer distinct advantages and disadvantages, making it crucial to understand the tax implications before making a decision. The Basics:...

Read More

The Tax Impact of Depreciation

When it comes to running a successful business, understanding the nuances of taxation is crucial. One often overlooked aspect with a significant impact on taxes is depreciation. Depreciation is not just an accounting concept; it can have tangible effects on your tax liability. Let’s explore the tax implications of...

Read More