By Vernon Keenan, CEO of Taxnexus
In the wonderful world of American cannabis commerce, we are all beholden to the new cannabis laws and regulations enacted by the states. The opportunity to make money comes with a heavy and unpredictable tax burden. Cannabis tax compliance requires accurate and ongoing surveillance of the legislative landscape and specialized tax accounting. Only with those tools in operation can cannabis taxpayers remain financially compliant. We created Taxnexus to provide cannabis businesses with transactional tax compliance services from transaction to treasury filing.
Tax Compliance as a Service in Commerce
Since the 1960’s, American commerce has relied on specialty tax compliance services to remain compliant. An example of what Taxnexus does can be seen in the telecom industry by looking at your phone bill. The FCC requires the detailed listing of all taxes and fees on your statement. Every telecom uses a tax service provider like Taxnexus, not a CPA, to manage the complexity of calculating and presenting taxes on phone bills to consumers, and filing returns with various jurisdictions.
The cannabis industry currently suffers without such a service, resulting in regulatory noncompliance by businesses and governmental tax collection failure. With new and evolving cannabis tax laws at the state and local levels for each type of license, cannabis businesses are in dire need of a tax compliance solution to streamline their transactional tax compliance. By joining forces with cannabis technology commerce software providers, together we can enable the success of the industry at this crucial time.
Gain an Advantage with Taxnexus API
Our value proposition to you is to partner with Taxnexus to offer your customers accurate tax data through your software. With Taxnexus, making sure your clients are tax compliant can be as easy as making an API call.
- Tax Regimen Database — With a given address, we will identify all the taxes that apply to that geographic location. Taxnexus surveils all state and local sales & cannabis taxes.
- Financial Accounting and Reporting — Taxnexus keeps a general ledger for each taxpayer to accurately report all tax liabilities.
- Tax Return Production and Filing — On an annual, quarterly or monthly basis, Taxnexus automatically generates tax returns and files them on behalf of the cannabis taxpayer. Every taxpayer gets a personalized calendar of filing deadlines.
How To Partner with Taxnexus
We have a range of partnership options, and can craft custom agreements to meet specific needs. Here are examples of partnerships we are currently pursuing:
- Metrc Integration Only — Through our affiliate referral program, even without a direct API integration, we can solve your customers’ tax problems. In Oregon and Colorado, Taxnexus ingests data directly from Metrc.
- Taxnexus API Rates Only — Allows you to fill out a tax table or internalize your tax algorithms with Taxnexus Rate data.
- Invoice Tax Calculations — Taxnexus processes every in-store or delivery sale and handles the tax calculation and reporting algorithms.
- California Distributor Support — Taxnexus services California distributors via daily ingest of invoices and purchase orders. This is required to complete the California Quarterly Cannabis Distributor tax return.
For revenue sharing, we have established partner categories that match these levels of engagement.
Get started by joining the Taxnexus Developer Program that will support your engineering team in evaluating Taxnexus and building Taxnexus integrations. We have an annual program fee of $200 to be a member in the Taxnexus Developer Program.
Choose Your Integration Method
There are two ways to get Taxnexus integrated into existing applications. The first way is to study Taxneux API (https://docs.taxnexus.net) and use one of our SDKs to write the integration directly into your application. We currently have SDKs ready for PHP, Go and Node, and you can generate your own SDK using the Taxnexus Open API specification, which is available at https://docs.taxnexus.net/taxnexus-swagger.yaml.
If your software platform already has an API that exposes your financial data to authorized partner applications, then we have more options. Taxnexus may then write a “plugin” or “cartridge” application that uses both of our APIs at once. This creates a functional gateway between Taxnexus and your application.
Build an AppStore with Taxnexus
Having one’s own API is common strategy for tech companies that operate in the cloud. These companies further differentiate their offerings by using that API to build an AppStore for their partners to sell add-on software and services.
Take a look at Xero and Shopify. Both of those firms have partner galleries and AppStores where their customers find specialized solutions to business problems. The Salesforce AppExchange is considered to be the first and most successful example of a business AppStore.
Cannabis technology businesses who are thinking about building their own AppStore should consider Taxnexus as their anchor tenant. In fact, as anchor tenants in Xero, Salesforce and Shopify AppStores, tax service providers in other specialty tax industries such as Avalara and TaxJar have increased business for those vendors.
Don’t Conquer Taxes On Your Own — Join Taxnexus Instead!
There are less than 50 tax compliance service providers in the United States servicing millions of businesses. All of the businesses who pay for those services have realized an essential truth — it is better for an entire industry to solve its tax problems by pooling resources through service providers like Taxnexus rather than to go it alone.
By being among the first cannabis technology commerce software businesses to adopt Taxnexus, you will gain a competitive advantage by including the Taxnexus brand and features in your sales and marketing materials.
Make tax compliance a key value proposition in your software by making the call to Taxnexus for a demo and business development conference today.
— Vernon Keenan, email@example.com, cell: 415-420-2965, office: 510-679-1900