HACKER Q&A
📣 aravya

Sales tax for a SaaS side-hustle


Hi HackerNews - I am going to start my first SaaS side-hustle. Any tips on when should I start worrying/collecting about sales tax. I haven't yet launched and not sure when will I make my first sale.

Any tips from your experience when you started?

Edit: Based in California, USA. All infrastructure located in California as well.

  👤 billconan Accepted Answer ✓
We currently use stripe + taxjar, but it's too complex to handle for a side-hustle in my opinion.

I have heard of https://paddle.com/ , which is a payment service + tax handling. Basically it's like apple's app store. You sell your creation to paddle, and they resell it. So they will handle taxing and you get royalty. it's way easier.

I have never tried them, but if I were to create a side-hustle, I will consider paddle.

👤 ayoubElk
I think this largely depends on where you're based, you should provide more information to get advice specific to your situation.
👤 pletsch
This really depends on where you're located. Who are you using as a payment processor?