Company Folders Bans All Orders from South Dakota in Response to Supreme Court Ruling

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Online printer denounces decision as irresponsible, devastating to small businesses

Vladimir Gendelman - CEO, CompanyFolders.com

Vladimir Gendelman (pictured) is the owner of Company Folders, an online retailer effected by the recent Supreme Court ruling that requires sales tax on purchases made from South Dakota.

It’s just not feasible for us to do business with South Dakota while also complying with these new rules...

A Supreme Court decision made on Thursday (South Dakota v. Wayfair, Inc., et al.) created brutal consequences for web-based businesses across the country, requiring them to charge sales tax on orders made from South Dakota. In response, Company Folders has announced that they are rejecting all purchases made from South Dakota until further notice.

“It’s disappointing to have to turn away business,” said Vladimir Gendelman, founder and CEO of Company Folders, Inc., “but the Supreme Court hasn’t left us much choice. This is an irresponsible decision that will have horrible implications for any small business that sells online—including Company Folders.”

According to the Supreme Court’s ruling, the sales tax requirement applies to any company with more than $100,000 in annual sales or 200 annual transactions from the state of South Dakota. This is wildly problematic for businesses like Company Folders, who are unable to anticipate whether or not that tax will be required year-to-year.

“It’s just not feasible for us to do business with South Dakota while also complying with these new rules,” said Gendelman. “It would be absurd for us to charge all of our South Dakotan clients an extra bill after the fact if we end up crossing the threshold. Nor would it be worth the hassle to charge them sales tax up front and then send a refund later if the tax isn’t required.”

Gendelman, along with many other small business owners, fears Thursday’s decision could lead other states to enact similar regulations—effectively preventing companies who lack the necessary resources from doing any business at all.

“Every state has its own tax requirements,” said Gendelman. “Keeping track of all of them, registering for the necessary permits, filing taxes every month (or even twice a month), and developing tax collection software would be an absolute nightmare; it would require an investment of time and money that we simply can’t afford.”

Since Company Folders offers more selection than any other online folder printer (including over 100 folder styles and dozens of paper stock options), it’s especially unfortunate that South Dakota will no longer have access to the company’s wide range of products and services.

“Our hope is that legislators will see the disastrous effect that this ruling has on small businesses, and take action before it’s too late. Until then, I’m sorry to say that clients in South Dakota will need to look elsewhere.”

For more information, contact Vladimir Gendelman at (248) 630-4303 or vladimir(at)companyfolders.com.

About Company Folders, Inc.

Company Folders (http://www.companyfolders.com), the standard-bearer in online folder printing, offers excellent service and the industry's largest selection of folders and style options backed by a lifetime warranty. Other print services include binders, envelopes and logo design. The Pontiac, Mich. company earned rankings on the 2015, 2016 and 2017 Inc. 5000 lists of the fastest-growing private companies in America. Founded in 2003, Company Folders has since worked with thousands of organizations to create one-of-a-kind print marketing materials that showcase each customer’s unique brand identity. For more information, please visit https://www.companyfolders.com.
Vladimir Gendelman photo

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Vladimir Gendelman
@CompanyFolders
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