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Software · head to head

Avalara vs Carta

Avalara logo

Avalara

Software

Tax compliance done right

From
$29/month
Rated
-
Full reviewWebsite
Carta logo

Carta

Software

Equity management & valuations

From
$29/month
Rated
-
Full reviewWebsite

The short version

  • Each has a real cost: Avalara plans start at $699 per state per year, so multi-state sellers multiply that figure rather than paying one subscription; Carta free plan eligibility as captured 19 January 2024 was capped at companies with fewer than 25 stakeholders and less than $1M raised in funding
  • They diverge on capability: Avalara covers Tax calculation, Carta covers Cap table management.

Where they differ

Only the attributes on which Avalara and Carta actually diverge.

Attributes where Avalara and Carta differ
AttributeAvalaraCarta
PlatformsWeb, ApiWeb, Ios, Android
Founded20042012

Identical on both: starting price ($29/month), pricing model (subscription), free tier (No), user rating (Not yet rated), category (Unknown).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in Avalara

  • Tax calculation
  • Returns filing
  • Exemption management
  • Document management
  • Real-time rates
  • NetSuite
  • Shopify
  • Magento

Only in Carta

  • Cap table management
  • 409A valuations
  • Equity plans
  • Investor reporting
  • Fund administration
  • Gusto
  • Slack
  • Bank-level encryption

Both cover

  • QuickBooks
  • SOC 2
  • Web support

What people use each for

The jobs each tool is most often brought in to do.

Avalara

  • Real-time sales tax calculation at checkoutnot Carta
  • Multi-state and multi-jurisdiction tax determinationnot Carta
  • VAT, lodging, communications and excise tax calculationnot Carta
  • Feeding tax results into an ERP or ecommerce platform through the APInot Carta

Carta

  • Equity managementnot Avalara
  • 409A valuationsnot Avalara
  • Fund administrationnot Avalara

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

Avalara

  • Plans start at $699 per state per year, so multi-state sellers multiply that figure rather than paying one subscription
  • Billed by transaction, where one API call is one transaction, so cost tracks invoice volume
  • The free option is limited to the Streamlined Sales Tax programme, in up to 25 states and only for qualifying businesses

Carta

  • Free plan eligibility as captured 19 January 2024 was capped at companies with fewer than 25 stakeholders and less than $1M raised in funding

Pricing, plan by plan

Avalara

$29/month
  • AvaTax$50/month
    • Tax calculation
    • Exemption certificates
    • Returns filing

Carta

$29/month
  • LaunchFree
    • Cap table
    • Stakeholder management
  • Seed$360/year
    • 409A valuations
    • Option exercising
    • Scenarios

Which should you pick?

Choose Avalara if

  • You need tax calculation.
  • You work on Web, Api.
  • You also want returns filing.
Avalara review

Choose Carta if

  • You need cap table management.
  • You work on Web, Ios, Android.
  • You also want 409a valuations.
Carta review

Questions people ask

Is Avalara or Carta better?
Neither clearly leads. Avalara starts at $29/month and Carta at $29/month, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Avalara or Carta?
Avalara starts at $29/month and Carta at $29/month.
Does Avalara or Carta run on more platforms?
Avalara runs on Web, Api. Carta runs on Web, Ios, Android.
What is Avalara best used for?
Avalara is most often used for real-time sales tax calculation at checkout, multi-state and multi-jurisdiction tax determination, vat, lodging, communications and excise tax calculation, feeding tax results into an erp or ecommerce platform through the api. Of those, real-time sales tax calculation at checkout and multi-state and multi-jurisdiction tax determination are not what Carta is typically brought in for.
What can Avalara do that Carta cannot?
Avalara covers Tax calculation, Returns filing, Exemption management, Document management. Carta covers Cap table management, 409A valuations, Equity plans, Investor reporting. Both handle QuickBooks, SOC 2, Web support.
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