Marketplace Tax Compliance Solutions

The sales tax laws for marketplaces in the US have changed quite a bit over the last 4 years, and these days the marketplace is required by law to collect and file/report sales tax on behalf of 3rd party sellers while also providing the 3rd party seller tax reporting. This gets even more complicated as each state has their own rules on what types of items or services do or don’t get taxed, or get taxed at different rates. Then, that rate also varies by address for service delivery. If you plan on legally doing business at any scale, you have to have these solutions built in on day one. This is quite possibly my largest barrier to launching an MVP.

My question is, how are bubble marketplaces handling this and maintaining compliance? I’m looking at building a marketplace and would like to know what approaches other bubblers have used to solve these problems? :pray:

Thanks for your help!

I believe this one of the main reasons why Stripe came up with the Stripe Connect concept, where they basically offload a lot of things related to these issues from you. Can’t be certain, but I believe it’s your best bet, check it out.