Nov 15, 2017
Scott Scharf is the founder
of Catching Clouds an online accounting platform for ecommerce
businesses. There was a time when online selling was the wild west,
but the government and taxes have caught up to the industry and are
targeting individual sellers.
Scott shares information, tips, and insights into legally
navigating the world of tax and online finance when buying,
selling, and running an online business.
online businesses need to reach out to state tax entities after the
sale until their tax liability is voided.
things that can happen are audit triggers and owed taxes on zero
has been a long time online geek. He and his wife decided to focus
on online accounting to help online business owners.
- Catching Clouds provides outsourced cloud
accounting for ecommerce sellers.
have just launched their online Catching Clouds
people should be doing after selling their business.
- Engage a CPA or expert before closing down the
want to understand the tax impact and any rules you need to
it’s easier to keep your EIN when switching businesses. You can
close sales tax licenses that you don’t need for that
tax licenses for ecommerce businesses. When selling an FBA business
you need to actively close down the past sales tax licenses and
file your last returns and follow-up so that they have closed the
biggest gotcha for selling an FBA business. You don’t want to be
audited after the sale.
importance of collecting all of your business documents, payroll,
EIN, vendor invoices, and where you spent your money, and all of
your receipts. This will help with a sale and protect you in an
audit. Save your receipts in real time.
Hubdoc to collect financial statements for clients. You need all of
your data saved and organized in one place.
you aren’t keeping track of everything you need to go back through
now with your document collection.
- Building a complete asset list of everything
that you have.
because something is on a credit card statement, you still need to
prove what you have.
up all of your data. You can be liable for up to 10 years. Back
everything up in the cloud and a physical copy or a
- Record all of your websites and logins on a
password tool like LastPass. Handing over the account makes it
super easy hand over a business.
- Document your standard operating procedures.
Create a list of support tools, team members, and general
- Download your last batch of orders before a
sale for sales tax purposes.
wait until the end of the month. Call the tax entity and get your
final sales tax forms filed.
calling the IRS and if you were given bad advice they won’t hold
you accountable. With other departments call back and make sure you
get the correct information.
- Always follow through and be diligent with tax
your new business address and specifically change it.
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