E-Commerce Tax in LA
E-Commerce Tax Services
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Sales Tax Compliance — Determining where you have nexus, registering with the right states, and filing returns accurately with the CDTFA and other jurisdictions.
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Marketplace Facilitator Rules — California requires marketplaces like Amazon and Etsy to collect tax on your behalf, but you still have direct-sale obligations. We sort out what is covered and what is not.
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Use Tax on Inventory — If you purchase inventory from out-of-state vendors without paying California sales tax, you owe use tax. We calculate and report it so you stay compliant.
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Multi-State Nexus Analysis — FBA inventory stored in other states can create tax filing obligations in those states. We identify where you have nexus and manage the filings.
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Cost of Goods Sold — Accurate COGS tracking for product-based businesses, including landed costs, shipping, and returns.
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Income Tax Returns — Federal and California returns prepared with proper treatment of inventory methods, shipping income, and platform fees.
Platform-Specific Support
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Amazon FBA — Reconciling settlement reports, managing FBA fee deductions, and handling multi-state inventory storage nexus.
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Shopify & WooCommerce — Direct-to-consumer sellers need proper sales tax configuration and payment processor reconciliation. We set it up and maintain it.
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Etsy & eBay — Tracking fees, shipping labels, and payment holds across these platforms and reconciling them to your books.
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Wholesale & B2B — If you sell both retail and wholesale, we manage resale certificate documentation and exemption tracking.
Why LA E-Commerce Sellers Choose Reed Corporation
E-commerce tax is not simple, and it has not been since the Wayfair decision in 2018. If you sell to customers in multiple states, you potentially have sales tax obligations in every one of them. Add California’s own CDTFA requirements, district taxes that vary by city, and the complexity of marketplace facilitator rules, and you are looking at a compliance headache that most general CPAs are not equipped to handle.
We work with e-commerce businesses specifically and understand how platforms like Amazon, Shopify, and Etsy report income. We reconcile platform payouts to your actual bank deposits, track platform fees as deductions, and make sure your COGS is calculated correctly so you are not overpaying on income tax. If the CDTFA ever comes knocking, your books will be ready.
Ready to Get Started?
Schedule a consultation to discuss e-commerce tax and accounting for your LA-based online business.