The Challenge:

Global fitness company needs a sales tax compliance process for their rapidly growing business

MAXPRO Fitness, based in Detroit, launched their portable fitness machines via Kickstarter in 2019. At the time, they had no sales, no sales tax obligations, and as such, no functioning sales tax compliance process in place. Since then, the amount of growth that MAXPRO Fitness has experienced is astonishing. They began shipping orders across the country and the globe, expanded rapidly in sales and product lines, grew into multiple global warehouses, secured Shaquille O’Neal as an investor, and even made their television debut on the popular show Shark Tank.

MAXPRO Fitness’ Chief Financial Officer, Mike Kelley, has been part of the team since the very beginning. When he assessed the company’s capacity to manage sales tax internally, he identified gaps in knowledge as well as bandwidth to manage everything successfully on their own.

“Sales tax is very convoluted. We needed to understand when to start reporting and collecting.” explained Kelley.

The more time that passed before getting a firm grasp on their sales tax meant that the risks of non-compliance would compound as operations continued to ramp up.

MAXPRO Fitness’ sales tax compliance process needed to be established by experts so that periods of non-compliance and exposure could be avoided. They needed a sales tax solution that would provide accurate guidance as well as take on the maximum amount of responsibility related to managing a sizable volume of state and local tax returns every month.

Why TaxConnex?

Personal. Accountable. Experienced.

“When it comes to outsourcing our sales tax compliance, it was important to us that we used a provider, like TaxConnex, that is specialized.” said Kelley. “The human aspect was also very important to us. We wanted someone who shared in the responsibility for knowing and reporting, accurately, alongside us.”

As a growing global provider of fitness equipment and technology solutions that sold through multiple channels, including eCommerce, it was important to monitor changes to state and local regulations, handle a plethora of sales tax registrations, and stay on top of monthly sales tax return preparation, filing and notices. Kelley estimates that sales tax compliance alone would take a substantial amount of time away from other core focuses. “Sales tax is like opening Pandora’s box and it’s a huge relief to have experienced professionals handle it.” said Kelley. That’s why MAXPRO Fitness trusts TaxConnex to manage all their sales tax compliance needs.

“We considered automated solutions, but an API connector can’t solve everything.” described Kelley. “We needed experienced guidance on when sales tax becomes a worry and when to start reporting and collecting from customers. Having [a personal practitioner] to talk to that actually knows your business is extremely valuable.”

The Results:

TaxConnex was able to provide expert guidance on their current sales tax exposure and implement a fully managed sales tax compliance process. MAXPRO Fitness partners with TaxConnex to ensure that all their monthly return preparation and filing requirements are handled in a prompt and precise manner.

“[Our practitioner] is a task master. Sales tax is in the back of my mind plus when you’re a small company and wearing many different hats, it’s easy for something like sales tax to slip through the cracks.” explained Kelley.

When MAXPRO Fitness previously attempted to manage sales tax internally, they were often months behind. Now, the monthly sales tax deadlines are fulfilled on time and the administrative burden of managing sales tax internally has been lifted from Kelley’s team. Periods of non-compliance are no longer a concern for MAXPRO Fitness.

“The entire process of working with TaxConnex has been great. [Our practitioner] has built an immense amount of rapport with our company and learned the complexities of our business. It’s great to have a partner like TaxConnex that you can trust because compliance is very important.”

About MAXPRO Fitness

MAXPRO Fitness, as seen on the television show Shark Tank, is a global fitness company that offers a wide range of workout equipment, accessories, and digital tools including a mobile app designed to help people achieve their fitness goals. Founded by fitness enthusiasts with a focus on high-quality products and commitment to customer satisfaction, MAXPRO Fitness has quickly become a leader in the fitness industry. For more information, please visit www.maxprofitness.com.

Looking TO LEARN MORE? CLICK ON THIS eBOOK TO see what steps you need to take for compliance!

Learn More About Our Sales Tax Solutions

CONTACT TAXCONNEX^® TODAY.

Learn more about the TaxConnex^® Difference.