TRX modernized its nationwide U.S. sales tax compliance in 6 weeks with Commenda

When TRX relaunched under new ownership in 2022, the newly formed entity continued to operate much like the legacy business it replaced. The previous TRX entity had been registered to file in nearly every U.S. jurisdiction, dozens of state and local tax authorities in total because it sold into all of them.

Through the transition, rather than resetting its tax posture, TRX maintained the same compliance footprint. The new entity kept collecting sales tax everywhere, relied on its legacy exemption certificates, and continued using its long-time sales tax compliance provider, Avalara, without re-evaluating whether the underlying obligations still applied. The result: a complex, outdated compliance pattern that no longer reflected how the business actually operated.

By the time Matt, Controller at TRX, started looking for a new solution in Q1 2025, several structural problems had compounded.

The new entity was over-registered in jurisdictions where it didn't need to be filing, and miscategorized in others. Every unnecessary filing was a recurring cost — and a recurring risk of getting something wrong.

While Matt worked through the backlog, gaps remained. "There's still a couple states we're still not filed in, still not current, but got to the point where our sales tax compliance provider contract was coming up for renewal mid year."

TRX's legacy provider charged fees for every integration and added costs for each transaction. As the business scaled internationally — across 30+ countries with all 50 U.S. states already over the economic nexus threshold — those fees compounded quickly.

"I'd looked at replacing them last year, but just didn't have the bandwidth or time to really research fully a good solution and then do an implementation."

By Q1 2025, with a renewal looming and no clear path to a right-sized footprint, Matt knew he needed a partner and not just a platform.

Matt connected with Commenda late in Q1 2025. What set Commenda apart wasn't a single feature, but rather the combination of an engaged team and a platform purpose-built for companies that need both entity infrastructure and ongoing tax compliance under one roof. A typical sales tax platform alone wouldn't have been able to help TRX rethink its registration footprint; a typical entity provider wouldn't have been able to handle ongoing filings, nexus monitoring, and exemption certificates. TRX needed both.

The teams kicked off shortly after and went live on September 1 — a six-week implementation with intentional buffer built in given the complexity of sales tax migrations and the stakes of any integration not working as expected. That buffer proved valuable: the NetSuite integration in particular had a number of challenges, and the extra time helped the team work through them without disrupting compliance.

Commenda's tax team guided TRX through de-registering where appropriate, updating tax types to simpler structures in complex jurisdictions, and bringing every part of the entity's exposure into compliance. Where the legacy footprint had been inherited wholesale, the new one reflected how TRX actually operated.

As a major player in the health and fitness industry, TRX exceeded the economic threshold in every state where sales tax applies. Commenda provided monthly analyses of threshold breaches and delivered detailed reports that helped TRX clearly identify its nationwide sales tax liabilities — turning what had been a reactive scramble into a predictable monthly rhythm.

"I have one team member who manages all of our exemption certificates, and that functionality has been particularly efficient for us. It allows him to handle everything seamlessly, making the handoff significantly easier."

Where the legacy provider charged for every integration and layered fees on every transaction, Commenda included all integrations at no additional cost and priced transactions at less than half of what TRX had been paying.

"90% of the journey is about who you're working with. I preferred not working with our previous tax compliance provider because it just didn't connect well — we didn't like their customer service."

With Commenda, TRX found a partner that responded promptly and supported them across the full lifecycle — from de-registration through ongoing filings.

Through Commenda, TRX achieved a streamlined compliance footprint that finally reflected the operations of its newly registered entity. By eliminating unnecessary registrations, recalibrating tax types, and ensuring filings were accurate in every jurisdiction, TRX stopped overpaying and brought its compliance costs under control.

TRX is no longer over-registered anywhere. The compliance footprint now matches how the business operates, not how its predecessor entity used to.

As filings come due, the Commenda team generates tax liability reports, files in every required jurisdiction, and delivers a summary report. "I'm sure we'll get notices here and there and have a few things to work out, but overall, as long as the Commenda team is actively logged in, filing, and providing us with a summary report, I consider that my measure of compliance."

With all integrations included and transaction pricing cut by more than half, TRX's compliance spend no longer climbs in lockstep with growth.

Automated nexus monitoring, exemption certificate management, and proactive notice flagging mean issues get surfaced before they escalate — not after.

TRX now operates with a modernized, efficient tax infrastructure that supports sustainable growth. As the business continues to expand its global footprint — already selling in 30+ countries — Commenda's combined entity and tax platform gives TRX a single partner that can scale with the company in both dimensions, rather than forcing the team to stitch together specialists.