State and Local Tax Compliance: 5 Tips to Minimize Exposure and Maximize Revenue

2. Register your company as a taxpayer in the necessary state and local jurisdictions.

Consider state as well as local, city, county and jurisdiction tax rates to determine the combined sales tax rate of any given address or physical location. The potential combinations of these tax rates exceed 7,000 in the U.S., creating a significant challenge for retailers to keep up with and manage manually.