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Avalara Help Center

Manage a Company

This article applies to:Avalara AvaTax

A company represents your business and its taxing policy. In addition, a company brings a host of different identifiers and ways it can be used.

After you add a company, you can edit a company.

Complete a company

A companyHoverTT.png started in the New Company wizard must be completely defined and reviewed before the company is activated.

  1. On the Organization tab, click the link of a company that is In Progress.
  2. In the New Company wizard, complete the configuration of the company and click Finish.

Activate a company  

Each company added must be activated before AvaTax processes transactionsHoverTT.png for that companyHoverTT.png.

  1. On the Organization tab, select the check box next to a company name with a status of In Progress or Inactive.
  2. Click Activate.
  3. Confirm the companies to be activated and click OK.
  4. A message indicating successful activation appears above the company name. Click Close.
  5. The status of the company is now Active.

Deactivate a company

Deactivating an active company makes it unable to process transactionsHoverTT.png.

  1. On the Organization tab, click a Company Name link with a status of Active.
  2. On the Company Setup tab, choose Inactive for the company status.
  3. Click Save.

Inherit a tax profile from a parent company

A parent companyHoverTT.png and one or more child companiesHoverTT.png can share the same tax profileHoverTT.png through inheritance. Inheritance allows one tax profile to be:

  • Created and maintained in a parent company
  • Used by the parent company and its child companies when processing transactionsHoverTT.png

Inheriting a tax profile make sense when a child company and its parent company sell similar products and services into the same jurisdictions.

  1. On the Organization tab, click the Company Name link of a child company.
  2. On the Company Setup tab, choose Inherit Tax Profile for tax profile.
  3. Click Save.

Combine child company transactions with a parent company

TransactionsHoverTT.png for a parent companyHoverTT.png and one or more child companiesHoverTT.png can be combined. We recommend making this change between the 1st and the 5th of the month after the period you want to make the change effective in order to avoid affecting returns filing and funding mid-cycle.

  1. On the Organization tab, click the Company Name link of a child company.
  2. On the Company Setup tab, choose No for separate reporting entity.
  3. Click Save.

Avalara generates one liability worksheetHoverTT.png for the combined transactions. Tax return reports also reflect the combined transactions.

Identify the default company

The default companyHoverTT.png controls where the company is displayed and used for reports. The default company is identified by an orange asterisk ( * ) before the status.

AvaTax requires one company be the default company. The first company added automatically becomes the default company.

While any company can be selected as the default company, the company most commonly used or the company with the most transaction activity is usually selected as the default company. If AvaTax receives a transactionHoverTT.png that doesn't include a company codeHoverTT.png, AvaTax uses the company code of the default company when processing the transaction.

The default company information is initially:

  • Displayed on the transactions tab
  • Displayed in the Returns calendar on the tax returns tab
  • Used to generate reports, except tax return reports

Identify separate reporting entities

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

Information for a company that is a separate reporting entity is used in:

  • The liability worksheetHoverTT.png and tax notices on the Tax Returns tab
  • Tax return reports on the Reports tab

Delete a company

You can't delete a company if:

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

Instead of deleting a company, deactivate it .

Delete a company from AvaTax using the following steps:

  1. On the Organization tab, select the check box next to the Company Name.
  2. Click Delete.
  3. Confirm the company that will be deleted.
  4. Click OK to confirm deletion.


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