Hacker News Reader

Comment by jatsign | Hacker News Reader

I run a little side project that sells a small software tool for $12/customer (forever, not recurring). It generates about $1200/month.

Should I care about this? I use Stripe to collect payments, if it matters.

View on HN

If I were a lawyer, I'd be able to tell you with great certainty and precision what all the reasons are why you shouldn't look for an answer to that question here.

True, but there probably aren't many lawyers who can answer the question either.

> True, but there probably aren't many lawyers who can answer the question either.

Strange take. On the contrary, there is an entire industry of lawyers who specialize in the ability to answer precisely this kind of question.

Or are at least willing to indemnify you based on their answer should their answer prove incorrect.

SaaS is taxable in some states [1], so if you have nexus in one of those states you'll want to register for a sales tax permit and collect sales tax for that state. When these states introduce thresholds similar to South Dakota, you may be obligated to collect sales tax in additional states.

You can use a sales tax API with Stripe [2] to calculate sales tax before processing the payment. From there, you'll have to remit the sales tax to the state manually or use sales tax compliance software like TaxJar or Avalara.

[1] https://blog.taxjar.com/saas-sales-tax/ [2] https://developers.taxjar.com/blog/handling-sales-tax-with-s...

Reply on news.ycombinator.com