Add or edit a legal entity

Add a legal entity

If you have a company or part of your company that collects and reports sales and use tax separately from the organization that is already set up in Sovos Filing, you can add it as a new legal entity by following these steps.

You’ll need a new OU Code to be able to add a legal entity. Open a ticket on the Sovos Portal to request one from customer service.

1. Go to Settings > Legal Entities and click Add.
2. Fill in the required information and any optional information you want to include.
3. Click Save.

Edit a legal entity

1. Go to Settings > Legal Entities.
2. Click the legal entity you want to edit. A side panel will appear with the legal entity's information.
3. Make your changes, then click Save.

Fields

The Management Information section is for internal use only.

Legal Entity Information

Required

• Legal Entity: The individual or organization that is required by the taxing authority to file and pay returns.
• Date Type: The date that Filing will use to assign transactions to returns. This article explains what each date type means.
• Filing Frequency: The date range you want to be considered when assigning transactions to returns.
  • If you select Calendar, Filing will use the first and last day of each month.
  • You can also select a custom date range.
• FEIN: A federal tax identification number that is required to file tax returns. 
• OU Code: The unique code assigned to an organization.

Optional

• SST Model Type: If you file returns in states that are part of the Streamlined Sales Tax program, select your Model type from the dropdown list; otherwise, leave None selected.
• SSTID: The ID number assigned to your organization as part of the SST program.
• S1 Org: The organization name, which may or may not be the same as the OU Code.

Contact Information

Required

• Street
• City
• State
• Zip Code

Optional

• Suite
• Phone
• Fax

Data Filtering (Optional)

This function allows you to control which states and tax types are reported in Sovos Filing. This is useful if you only report some GTD data through Filing but report other data yourself; for example, you may use GTD to calculate meals tax but file your own meals tax returns.

To add a filter, follow these steps:

1. Click Manage.
2. Select either State Code or Tax Type from the Filter type dropdown menu, then select the state or tax type you want to exclude from the Filter value dropdown menu.
3. To add another filter, click Add another filter and repeat step 2.
4. Click Save to apply the filter(s).

To delete a filter, click the Delete icon, which looks like a trash can. Deleting a filter can't be undone, but you can add a new filter with the same state or tax type to continue filtering out that data.

Holding (Required)

Some taxing jurisdictions don’t want you to file returns with a negative total amount. If you're reviewing a return and notice that there are transactions, returns, or credits that would cause a negative total amount, you can put those transactions on hold and apply them on a future return.

Sovos Filing can spot when there are transactions included in a return that would cause a negative total amount and automatically put them on hold. You can also have Filing flag these transactions for you to review or you can manually hold and release data.

Select one of the following options based on your holding preference:

• Auto-Hold Transactions (Default): Filing will identify the transactions that would create a negative amount on the return and put them on hold. Filing will also automatically release data that was on hold once it won't create a negative amount.
• Hold Transactions with Guidance: Filing will add a warning icon next to the transactions that would create a negative amount on the return. You can review these transactions and decide if they should be put on hold. Filing will also automatically release data that was on hold once it won't create a negative amount.
• Manual Hold: Filing won’t take any action. You'll need to identify if there are any transactions on a return that would cause a negative amount and put them on hold manually.

Signee and Signature (Optional)

You can use this section to store information about the signee for this legal entity. You can also upload a JPG file with a signature which will be applied to all returns.

Payments (Optional)

• Money Movement Enabled (Managed Services only)
• Payment Type: Select your payment type from the dropdown menu.
• Funding Window: The number of days it takes funds to clear after they have been received.
• Payments Notifications: If you want to receive email notifications about return payments, enter your email address. You can enter more than one email address by clicking Add.
• General Ledger Payment Accounts: Select Include General Ledger Payment Accounts if you want to assign separate payment accounts to individual forms of payment. The payment account information will be included in the Payment Requests document, which you can download from the Return Data tab.
• Banking Information: Select Include banking information if you want to store banking information for reference for webfiling. You can choose to include this information in EDI files for certain returns.