TPS Unlimited, Inc.

TPS Unlimited, Inc. operates as a cloud-based sales tax compliance platform, facilitating tax calculations, reporting, and filing for businesses across diverse sectors, enhancing operational efficiency in managing sales tax obligations. Founded in 2013 in Woburn, US, TPS Unlimited, Inc. specializes in automating sales tax compliance.

The company has successfully raised USD 59. 10 mn through its Series A funding round in April 2021, led by Insight Partners, contributing to a total amount raised of USD 59. 10 mn and a current valuation of USD 140. 93 mn.

The latest funding is part of the company’s journey to streamline compliance for over 20,000 businesses, primarily in the U. S. market. TaxJar's core product offering is a cloud-based sales tax compliance platform designed to automate the entire sales tax lifecycle for businesses across various industries.

This platform streamlines calculations, nexus tracking, reporting, and filing processes, thereby addressing the complexities businesses face in managing sales tax compliance. TaxJar's services are particularly beneficial for multichannel sellers, enabling them to expand into new markets while handling sales tax efficiently. The platform serves over 20,000 businesses, including retailers, food and beverage companies, medical services, and software as a service (SaaS) providers, primarily in the United States and select international markets. With functionality that includes real-time calculations, automated filing, and nexus insights, TaxJar ensures that its clients can remain compliant with sales tax obligations in over 11,000 jurisdictions across the country.

TaxJar's revenue model is structured around subscription-based services tailored for businesses that require assistance with sales tax compliance. Clients subscribe to various plans that grant access to the platform's suite of features, including real-time calculations and automated filing, with a specific focus on eliminating the administrative burdens associated with sales tax. For users on a paid plan, TaxJar offers additional services such as state sales tax registration, priced at USD 299 per state where nexus thresholds are met. By catering to both small businesses and mid-market enterprises, the company positions itself as a critical partner in managing sales tax obligations.

The transactional structure primarily operates on a B2B basis, where businesses directly engage with TaxJar to efficiently handle their sales tax needs, thus enabling them to focus on growth and operational efficiency. In April 2021, TPS Unlimited, Inc. was acquired by Stripe, Inc. , enabling Stripe to broaden the range of tools available to online businesses.

This acquisition is expected to support the integration of new features into TaxJar's platform, enhancing its capabilities. The company is focused on expanding its services into international markets, particularly targeting Canada and Europe by the end of 2023. The recent funding will be utilized to enhance product development and market entry strategies, ensuring that TPS Unlimited, Inc. effectively meets the evolving needs of its clients.