- Channel reconciliationShopify, Amazon, Etsy and payment processor payouts reconciled to gross sales, fees and refunds.
- Inventory & COGSInventory tracked so your gross margin, and your taxable income, are right.
- Sales tax nexusWhere your sales and stored inventory require you to register and collect.
- Income taxBusiness returns, quarterly estimates and the right entity as you grow.
Payouts aren't revenue
Platforms deposit net payouts after fees, refunds and reserves. Your books and tax return need gross sales with fees recorded as expenses. Otherwise revenue is understated and doesn't match the Form 1099-K the IRS receives, which can trigger a notice.
Form 1099-K
The 2025 tax law restored the federal reporting threshold for payment platforms and marketplaces to more than $20,000 and more than 200 transactions per year. Some states require reporting at lower amounts, and income is taxable whether or not you receive a 1099-K.
Sales tax for online sellers
- Marketplace sales: Amazon, Etsy and other marketplace facilitators generally collect and remit the sales tax.
- Your own store: sales through Shopify or your website are your responsibility once you have nexus in a state.
- Inventory in fulfillment centers can create physical nexus in states where it's stored.
- Economic nexus thresholds differ by state. New Jersey's is $100,000 of sales or 200 transactions; New York's is more than $500,000 and more than 100 sales.
Inventory
Inventory costs are deducted as goods are sold, not when you buy them. Smaller businesses (average gross receipts of $32 million or less for 2026) have simplified inventory options, which we can apply where they fit.
Frequently asked questions
Do I have to pay tax if I didn't get a 1099-K?
Yes. All business income is taxable whether or not a platform issues a 1099-K.
Does Amazon or Shopify collect sales tax for me?
Amazon and other marketplaces generally collect and remit tax on marketplace sales. Shopify is your own storefront, so collecting tax on those sales is generally your responsibility where you have nexus.
Why doesn't my revenue match my bank deposits?
Platforms deposit payouts net of fees, refunds and reserves. Your books should record gross sales and the fees separately.
When should my e-commerce business become an S corporation?
Once profit is comfortably above a reasonable salary for your role. We'll run the numbers.