Avalara's Krishnan on US Compliance for Indian Startups

Indian startups are expanding into the U.S. market, but they face complex tax rules.

The U.S. has over 13,000 tax jurisdictions, each with its own rules.

For software companies, they must collect sales tax once they reach $100,000 in sales in a state.

For direct-to-consumer brands, they must pay federal customs duty and state sales tax.

Many startups make mistakes like delaying tax registration or misclassifying products.

To avoid these issues, startups should use automation to manage taxes from their first sale.

This helps them stay compliant, build trust with customers, and make better business decisions.

Investors also look at tax records, so being compliant can help startups get funding faster.