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Case Studies

State and Local Tax for a Growing Fashion Brand

A Comprehensive Source Advisors Case Study

How A Growing Fashion Brand Managed U.S. Sales Tax Compliance

This Canadian shoe brand, having achieved success through its e-commerce channel, aimed to expand into the US market. However, entering the US means navigating complex tax regulations and compliance standards. This case study outlines how Source Advisors assisted the company in meeting all the necessary guidelines for its first US store opening.

About The Company

The company is a Canadian based shoe brand that experienced rapid international growth through a single e-commerce channel. As a result, they ambitiously set goals to enter the US market with an aggressive combination of physical stores and an expanded online presence. Not unexpectedly, the company was exposed to several US tax requirements and needed assistance to mitigate business risks.

The Goal

The client wanted to aggressively expand in the US with multiple retail locations and a broader e-commerce reach. In the prior year, US sales – via the e-commerce platform – reached approximately $500,000. It was their ambition to achieve over five million dollars in two years.

With their anticipated growth in mind, the client wanted to ensure compliance with all taxes, licenses, and fees for their retail locations. In the same way, it was necessary to properly configure their e-commerce platform to comply with US sales tax.

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Key Milestones

The Results

In the end, the company successfully met the necessary guidelines to open its first retail store in the US.
  • Hours of internal labor – and the need for additional salaries – saved
  • Compliance risks managed
  • Lost revenue to tax penalties avoided
Source Advisors established policies and procedures for the client to update relevant tax issues when introducing new products across all sales channels. Likewise, the team established a monthly process to ensure the client filed future sales tax returns accurately and on time.
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