Los Angeles Sales Tax: How Kintsugi Tackles Complex Tax Regions

Who is E-Mart?

E-Mart is a Los Angeles-based company, founded in 2013, that specializes in providing high-quality photography equipment for both professionals and enthusiasts. Their product line includes everything from lighting kits to backdrops, all designed to help photographers bring their creative ideas to life. Known for their reliable products and fast, nationwide shipping, E-Mart has grown steadily, earning a reputation for its commitment to customer satisfaction across California. As their business scaled, so did their reach, with nearly 1,000 orders shipped monthly, signaling their growing impact in the photography industry.

However, E-Mart's rapid growth introduced new challenges, particularly with sales tax compliance. As the company began selling to a wider customer base, managing sales tax in Los Angeles became increasingly difficult, especially after the county raised its sales tax rate to 9.75%. E-Mart struggled to stay on top of local sales taxes, use taxes, and differing exemptions across jurisdictions. Realizing that manual tax management was no longer sustainable, they sought a solution that could automate the process and ensure compliance. They chose Kintsugi for its seamless integration with Shopify and real-time updates on sales tax rates, which provided E-Mart with the automation and accuracy they needed to handle their growing tax obligations efficiently.

The Best Solution for an Ecommerce Business

As E-Mart's business expanded, managing their sales tax obligations across different jurisdictions became a concern. The company was dealing with differing sales tax rates, especially with Los Angeles County increasing its sales tax to 9.75% in 2024. In addition, they needed to track use tax on applicable purchases and manage any potential exemptions for specific goods. Manually tracking these obligations was starting to become overwhelming, as each city had its own set of rules. E-Mart needed a system that could not only track these requirements but also automate the complex process of filing, ensuring compliance with both local sales taxes and California's evolving regulations.

After considering several options, E-Mart chose Kintsugi for its powerful automation capabilities and Shopify integration. Their software offered real-time updates on sales tax rates across all relevant jurisdictions, eliminating the need for manual tracking. Additionally, their tools for monitoring revenue, handling purchase exemptions, and automating tax filings ensured E-Mart was always compliant without investing excessive time and resources into tax administration (Kintsugi). This made them the perfect solution to manage E-Mart’s growing sales tax burden while allowing them to focus on scaling their business.

Seamless Integration for Continued Growth

Integrating Kintsugi into E-Mart’s operations was a seamless process, thanks to their no-code integration capabilities, which allowed them to easily connect the platform to their Shopify. This integration automatically synced all of E-Mart’s sales data, removing the need for manual entries and greatly reducing the risk of errors. With real-time updates on sales tax rates, Kintsugi handled everything from calculations to filings, ensuring compliance across all of Los Angeles County and keeping E-Mart in a state of readiness for any tax obligations. This freed the E-Mart team from the burden of manually tracking taxes, allowing them to focus on expanding their business.

Additionally, Kintsugi’s advanced features, such as KintsugiSheets, provided E-Mart with powerful data management and reporting tools. This enabled them to track their revenue, tax liabilities, and exposure across local jurisdictions with absolute clarity (Kintsugi). The software’s automation reduced their tax preparation time by as much as 90%, saving them both time and money. It was an invaluable asset for E-Mart as it scaled its operations. This combination of seamless integration and robust functionality has empowered them to grow with confidence, knowing their tax compliance is in good hands​.

How Kintsugi Drives Success

• Automation: Since adopting Kintsugi, E-Mart has significantly reduced the time spent on managing sales tax. What used to take hours of manual work each month now takes a fraction of that time thanks to Kintsugi’s automation. The platform handles everything from calculating tax rates to filing, freeing up the team to focus on business growth.
• Error Reduction: Kintsugi’s real-time monitoring and automated filings have dramatically reduced the risk of compliance errors for E-Mart. By automatically tracking tax obligations across Los Angeles County, Kintsugi ensures that E-Mart always stays compliant with all applicable sales tax regulations. This reduces the chance of costly penalties or audits, providing peace of mind as the business expands into new markets (Kintsugi).

• Cost-Effectiveness: Implementing Kintsugi has resulted in significant cost savings for E-Mart. The platform’s ability to automate tax filings and calculations means that they no longer have to rely on expensive third-party services for sales tax management. By reducing both the time and monetary costs associated with tax compliance, Kintsugi has become a critical part of E-Mart’s cost-saving strategy.
• Scalability: As E-Mart continues to expand, Kintsugi’s scalability allows them to manage increasing sales volumes without worrying about tax compliance. The system adapts to new jurisdictions and tracks complex tax obligations, guaranteeing their compliance as they enters new markets (Kintsugi). This scalability is a key factor in E-Mart’s decision to rely on Kintsugi as they grow their customer base and revenue streams.

Looking Ahead with an Essential Partner

As E-Mart continues to grow, they see Kintsugi as an essential tool for their long-term success. With plans to expand into new markets and increase their product line, E-Mart will rely on Kintsugi’s ability to handle the complexities of tax compliance across multiple jurisdictions. As their sales grow, so do their tax liabilities, making Kintsugi’s automated system vital to ensuring that all sales tax rates, use taxes, and exemptions are handled accurately. The platform’s ability to provide real-time updates and one-click filings will be critical as E-Mart scales its operations. With them handling their tax compliance, E-Mart can focus more on expanding their reach and less on navigating the challenges of multi-jurisdictional tax regulations.

Kintsugi’s features, such as KintsugiIntelligence and KintsugiSheets, offer E-Mart the flexibility to scale without worrying about compliance issues. These tools allow E-Mart to monitor their tax obligations with precision, guaranteeing they remain compliant with local sales taxes and regulations no matter how their business grows. The CEO of E-Mart, is confident that with Kintsugi’s support, they can explore new markets and increase their purchase volume while minimizing the risks associated with non-compliance. "We trust that Kintsugi will continue to evolve with us, making tax compliance one less thing to worry about as we grow," E-mart said. As they look to the future, Kintsugi remains a cornerstone of their growth strategy.

About Kintsugi

Based in San Francisco and founded in 2022, Kintsugi is dedicated to taking the stress out of sales tax compliance. Our platform automates the entire process, delivering high performance, reliability, and flexibility as your business scales.

Kintsugi is secure, encrypted, GDPR-compliant, and SOC 2 Type II certified, adhering to the highest standards for security, availability, processing integrity, confidentiality, and privacy.

Learn more about Kintsugi’s platform and integrations here.