California and Colorado SaaS Sales Tax Changes: What Software Companies Need to Know
California and Colorado will begin taxing many SaaS transactions on January 1, 2027. Software companies should start evaluating the sales tax implications now.
AAFCPAs provides expertise and compliance solutions for multistate corporate income tax, sales and use tax, personal property tax, marijuana retail tax, and gross receipts tax.
State & Local Tax Nexus Analysis and Compliance Advisory
State and local tax requirements continue to evolve, and enforcement is increasing across jurisdictions. As businesses expand into new markets, they often become subject to a wide range of state and local regulations that can create both risk and administrative burden.
Growth brings opportunity, but it also brings new tax considerations. Entering new states, hiring remote employees, or expanding operations can quickly change where and how your business is taxed. Factors such as sales activity, employee locations, property, and inventory all play a role in determining your obligations.
AAFCPAs provides expertise and compliance solutions for multistate corporate income tax, sales and use tax, personal property tax, cannabis retail tax, and gross receipts tax. We combine tax expertise, practical guidance, and technology to help you manage complexity with confidence so you can focus on growth.
AAFCPAs’ SALT specialists perform nexus analyses, including sales and use tax nexus, to determine where your business may have state and local tax obligations.
We analyze:
We then review state-specific rules to determine how your activities translate into filing requirements, how income should be apportioned, and where potential exposure exists.
Nexus is the foundation of multistate taxation. It determines whether your business activity creates a tax obligation in a given jurisdiction based on physical presence, economic thresholds, or other factors.
Multistate tax compliance and multistate tax filing requirement can be challenging to navigate, especially as rules continue to change. Filing requirements are not always straightforward and often require careful interpretation. AAFCPAs helps clients manage these obligations with a structured, thoughtful approach. We focus on balancing compliance requirements with the realities of your operations so you can move forward with confidence. Our SALT automation tools streamline filings, while our team ensures compliance across jurisdictions.
Our approach includes:
Our team works directly with clients to address notices, clarify obligations, and provide practical insight based on real-world experience.
With SALT Specialists Guiding You Through Complex Regulations
Our tax automation software streamlines multistate and international tax management. What sets AAFCPAs apart is the experienced SALT professionals behind it. Multistate tax compliance requires more than accurate filings. It requires understanding evolving regulations, jurisdictional nuance, and how tax positions will hold up under scrutiny. Software can process data, but it cannot interpret gray areas or apply judgment.
AAFCPAs combines technology with a highly engaged SALT team that works directly with you. We review notices, clarify obligations, and provide practical guidance based on real-world experience across jurisdictions. When complexity arises, you have someone to call who understands both your business and the tax landscape.
Our multistate tax compliance solutions include sales and use tax registration and filings, exemption certificate management, advance payment calculations for industries such as cannabis retail, and income tax filings for corporations, partnerships, individuals, and trusts. We also support Canadian GST/PST compliance, voluntary disclosures, correspondence management, and audit preparation and response. Each engagement is tailored to the structure and scale of your operations, with a focus on consistency, efficiency, and risk mitigation across jurisdictions.
AAFCPAs also advises on a broad range of state and local tax considerations, including pass-through entity taxes, M&A tax exposure and due diligence, economic development incentives, tax credits such as R&D and jobs credits, business registrations and licensing, payroll tax considerations for remote employees, property taxes, and unclaimed property.
Clients rely on AAFCPAs’ decades of SALT experience not only for our technical expertise but also for proactive guidance, responsiveness, and a long‑term partnership approach. Whether you are addressing nexus questions, expanding into new states, or managing ongoing compliance, our team works alongside you to help you make informed decisions.
Our SALT team supports clients across:
We combine technical knowledge with a collaborative approach to help you reduce risk, improve processes, and plan for growth.
AAFCPAs offers a transparent and responsible approach to tax strategy. We emphasize proactive planning, compliance, and coordination across financial disciplines to mitigate risk and support long-term financial health. Our guidance promotes informed decision-making through collaboration with trusted advisors.
Working with AAFCPAs plays a key role in our ability to scale effectively in the competitive SaaS industry. As we grow, AAFCPAs helps us navigate the complexities of financial management, from managing varying state definitions and tax implications for SaaS to guidance on strategic business decisions. Their hands-on approach and industry-specific knowledge have been critical in helping us tackle new challenges.
I highly recommend AAFCPAs to my peers running a mid-sized family business like Zero Porosity Casting. For 20+ years we have relied on their superior tax expertise to help us run our business effectively. AAFCPAs continuously monitors all the changes in tax laws so it is one less thing we must worry about. They proactively inform us of the changes and provide insight as to how best to respond. I appreciate the depth of their team and the positive impact the multiple perspectives have on our tax planning which is critical to me. AAFCPAs makes it easier to grow because we have full access to their smart talent, and all the advisors we work with are in-house and all talk to each other albeit tax preparation, tax consulting, business tax, personal tax, SALT, Estate & Trust, business operations, succession planning, ownership transfer, foreign employee consultation, R&D credits, etc.
We trust AAFCPAs. They are a good value CPA firm, and we know they care about us. They do a fantastic job educating us via one-on-one, webinars, seminars, or email updates which gives us confidence in our decision-making!
I am very pleased with AAFCPAs’ proven tax expertise. I have had many occasions over the years to test both their business tax and also their individual tax expertise. Regardless, their specialist work to the same high standards, are diligent in their research, and thorough and thoughtful with their recommendations. Even when issues fall outside of the ordinary, such as their historic tax credit advice, CARES Act/ COVID Relief Package advice, or 606 expertise, I am continuously impressed with how well equipped they are to handle the complexities with successful outcomes.
The audit and assurance practice at AAFCPAs does a phenomenal job managing all aspects of this annual effort in an efficient and meaningful way for Vista Higher Learning, Inc. Their approach is well defined and follows a strict process. The planning takes place throughout the year with ongoing conversations between my team and AAFCPAs. We work exceptionally well together. We appreciate the consistency of the AAFCPAs audit team along with their responsiveness and diligent follow-up. Our partner is instrumental to ensuring success, especially with the planning and preparing.
Two Decades. One Trusted Partner.
AAFCPAs intimately understands our business, our global structure, and the demands of operating in highly regulated environments. They support us across core accounting, tax, and SALT compliance, and they do so with a clear understanding of our industry and how our operations work day to day. That familiarity allows the relationship to feel seamless and steady, even as our needs evolve.
What stands out most is the confidence we have in the people behind the work. After working together for so many years, there is a shared understanding of how we operate, what to expect, and how to move issues forward efficiently. That familiarity builds trust, reduces friction, and allows conversations to start at a higher level—supported by long‑term perspective rather than one‑off decisions.
I highly recommend AAFCPAs to organizations seeking a dependable accounting and advisory partner with the capabilities and capacity to support sustained growth.
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Every situation is unique. We look forward to speaking with you to determine how we may best solve your needs.