[arbuge]

That's just the exemption SD chose to apply, and which they could change at any time. Other states may choose to not have such an exemption.

You are also now open to tax audits from all other states, since you may need to prove you are below any exemption limit.

It's a bad deal for small business no matter how you slice it. I think that if your revenue is below ~$100m annually, the future is beginning to look bleak. Very helpful to the big players like Amazon in killing off small competition.

[omfg]

That’s a bit of a leap. It looks like fully automated compliance from the existing services. From collection to remittance is about 3-5k a year. With more competition it will likely become cheaper.

[michaelmrose]

Why would it? Why in particular wouldn't the fact that you are required to pay for their services allow the entire industry to jack up prices substantially?

Why wants to win by being the asshole who did it for $500 instead of say a percentage of revenue?

[wildmusings]

>Why would it? Why in particular wouldn't the fact that you are required to pay for their services allow the entire industry to jack up prices substantially?

Basic economic principles. You compete by lowering your price. So more competing providers would make it highly likely that price moves closer to cost, because there is a higher chance that one will defect from the current price structure.

To put it plainly. You run a gas station but the guy across the street gets all the customers. You both charge $3 but your cost is only $2. What do you do to get more customers? Lower the price.

[michaelmrose]

Please see the price of epi pins

[wildmusings]

That is a government-granted monopoly. There is no such dynamic here.

[seandougall]

> With more competition it will likely become cheaper.

I wish I shared that faith in market forces. What seems more likely to the cynic in me is that a big player like PayPal will incorporate it into their merchant services, obtain some overly broad patents on the process, use those to stifle competition, and make the service a nominally cheap add-on (but only for their own customers).