Statsig, an experimentation platform that allows teams to tie product efforts to key business metrics and quickly iterate as features are launched, was founded in the Seattle area in 2021.
Like many early-stage companies, Statsig didn’t have a dedicated finance department before they started making sales. So it was Vijaye Raji, Statsig’s founder and CEO, who went through the checklist of legal requirements for setting up billing and payments.
The Statsig team wanted to get compliant—but didn’t know where to start
Even though Statsig was less than a year old at the time, they were right to start thinking about sales tax early. Software companies at this stage could already be on the hook for sales tax in multiple states, cities, and even countries.
But it’s hard to know when, where, and how to become compliant. Each jurisdiction has its own tax rates and rules, registration and filing processes, and classifications for software products like Statsig.
Raji quickly realized that finding the right path to compliance for Statsig wouldn’t be easy.
“We didn’t fully understand the tax implications of selling SaaS to companies in other states. And then it was complicated even more by different states having different rules.”
Raji turned to his network to find out how other SaaS companies were solving this problem—and that’s when he discovered Anrok.