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Avalara Help Center

Company - Frequently Asked Questions

This article applies to:Avalara AvaTax

Here are the answers to our frequently asked questions about companies.

What is a company?

A company is a model of your business from a sales and use tax perspective.

Why can't I delete a company?

A company cannot be deleted if:

  • Jurisdictions have been added
  • A tax ruleHoverTT.png has been added
  • AvaTax processed a transactionHoverTT.png for the company

Change the Company Status of any company that cannot be deleted to Inactive in place of deleting it.

What is a separate reporting entity?

A separate reporting entityHoverTT.png is a companyHoverTT.png that reports and files its transaction history independent from any parent company or child company with which it may be associated.

Any company can be a separate reporting entity by choosing Yes for Separate Reporting Entity in the Company Setup tab.

Note:
On the Organization tab, a separate reporting entity is indicated by an orange section mark § in the Company Code column.

What is the difference between a parent and a child company?

AvaTax lets you build a hierarchy of companies to model the business structure in your organization.

A company's hierarchy is based on two company types:

  • Parent company
    • A company that creates and maintains its own tax profileHoverTT.png
    • A parent company can have one or more child companies
  • Child company
    • A company that can inherit its tax profile from a parent company. A child company can have only one parent company
    • A child company can act as a parent company to another child company

The parent company-child company relationship allows a child company to:

  • Combine its transaction history with its parent company for tax returns and tax return reports
  • Inherit its tax profile from its parent company