If your business includes holding companies and subsidiary companies that share tax-collection information or file together, make sure AvaTax reflects this relationship by designating child companies during company set up.
Before you begin
Gather the following information:
- Legal company name
The name your company uses on legal documents.
- Taxpayer ID Number
Also known as an Employer Identification Number (EIN). This number is created by the IRS. Call the IRS Business and Specialty Tax Line if you don't know your ID or have other questions about your company's Taxpayer ID Number.
- Business ID Number
If you do business outside the U.S., you need a Business ID (BIN) number. This number is created by the governments in the countries where your business operates.
- Your company's primary address
The physical address for your company's headquarters or main location.
You can find most of these items in your company's tax returns and business registration documents.
|If you need help along the way, hover the mouse pointer over the tip (i) icons on the screen for more information.|
- In AvaTax, go to Settings > Manage Companies.
- Select Add a Company, and then select Get Started.
- Enter your company information.
If your primary business address is located outside the U.S., clear the My Company's Primary Business Location Is in the U.S. checkbox, select the country your business is located in, and enter the Business ID (BIN) for that country.
- Select Organize This Company Under a Parent Company.
- Start typing the parent company's name in Parent Company field, and select it when it appears.
- In most cases, the child company shares tax-collection information with the parent company. If your child company doesn't, clear Use Tax Collection Settings of the Parent Company.
- If your child company files returns with the parent company, clear This is a Separate Reporting Entity. Leaving it selected means you need to set up returns separately for this child company.
- Select Next
- Tell us where your business is located.
- Enter your primary business address including the street address; city; state, territory, or region; and ZIP or postal code. This should be a place where you're registered to collect tax.
- Select Validate.
If your company is located outside the U.S., you may not see this option. If that's the case, select Next to skip this step.
- Compare the address you entered against the validated address.
- Select Use Validated Address to accept the changes or select Keep Original Address to use the address you entered.
We recommend using the validated address for the most accurate tax calculations.
- Confirm the address on the map or change it as needed.
- Select Next.
- Based on what you selected in step 4:
- If you used the parent company's tax-collection settings, you're done—select Activate Company.
- Otherwise, follow the instructions in Tell us where you collect and pay tax to set up tax calculation for your company.