← Back to context

Comment by goldenpothos

7 months ago

My two cents on Kagi raising the price of their subscription to cover their back taxes:

- Businesses that’ll eventually need to collect sales tax should add sales tax automation software to their stack from the beginning (even if they don’t expect to hit the threshold in a given jurisdiction anytime soon). Compliance can get really complicated really quickly -- and what founder wakes up and prefers doing taxes over actually building their product?

- Avalara is probably the most well-known one (Box uses them) but they have an implementation fee that we couldn’t stomach as a bootstrapped business https://www.avalara.com/us/en/index.html

- We ended up going with a fellow startup called Kintsugi because they had a free option that connects to Stripe and didn’t have an implementation fee. We probably won’t even hit any thresholds to need to file until 2025 (cross your fingers it’s earlier!!) but they said they’ll email us when we do, here’s their page https://trykintsugi.com/

- Anything related to compliance makes me anxious so this is great because I don’t even have to think about it until I actually need to, though hopefully not under the same circumstances as Kagi :)