Why Getting a New EIN Won’t Eliminate Your Ecommerce Sales Tax Debt or Liability

• Unpaid sales tax liabilities in ecommerce can accumulate unnoticed, especially after the 2018 South Dakota v. Wayfair decision, which expanded state tax obligations.
• Some founders try to escape sales tax debt by dissolving their business, forming a new LLC, and getting a new EIN, but this strategy does not work.
• States have laws (successor liability) that hold new entities responsible for the old entity’s tax debts if the business operations continue.
• Skipping registration or trying to avoid tax obligations can worsen the situation.
• Founders should address sales tax issues directly rather than seeking shortcuts; solutions like Kintsugi are designed to help automate and manage sales tax compliance.

Source: trykintsugi.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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