The Problem
TRX emerged from bankruptcy in 2022 with a newly formed entity, but it continued to operate much like the legacy business it replaced. Before the bankruptcy, the previous TRX entity had been registered to file in nearly every U.S. jurisdiction, more than 50 state and local tax authorities in total, because it sold into all of them.
After restructuring, rather than resetting its tax posture, TRX maintained the same compliance footprint. It kept collecting sales tax everywhere, relied on its legacy exemption certificates, and continued using its long-time sales tax compliance provider without re-evaluating whether the underlying obligations still applied. As a result, the new entity inherited a complex, outdated compliance pattern that no longer reflected its actual operations.
As TRX worked through its compliance backlog, there were still a few states where the new entity was not yet filed or fully current. “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. I’d looked at replacing them last year uh but just didn’t have the bandwidth or time to really research fully a good solution and then do an implementation.” said Matt, Controller at TRX.
“So I started looking around in Q1 of 25. l got connected with Spencer and the team. Late Q1 and then we kicked off with an original go live date.” said Matt, Controller at TRX.
After that initial kickoff, the team went live on September 1. They intentionally built in extra time because, given the complexity around sales tax and the risks of an integration not working as expected, they wanted to ensure there was a fallback and a reliable backup plan. That approach proved to be the right one. The NetSuite integration, in particular, had a number of challenges, to put it nicely, and the buffer in the timeline helped manage those issues.
The company’s legacy providers charged TRX fees for every integration and added costs for each transaction, which made their compliance spend climb quickly as the business grew.
The Solution
“I want to work with someone I can get on a call with who’s responsive. Ultimately, at the end of the day, the solution is the same. I take the same approach with insurance — you buy insurance from the same carrier, but the experience depends on the broker you work with, and that matters.”
TRX trusted Commenda as a partner they could build a long-term relationship with.
“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 team they could rely on — one that responded promptly and supported them throughout their entire sales tax journey. From de-registering where appropriate to updating tax types to more simplified structures in complex jurisdictions, Commenda ensured every part of TRX’s exposure was handled effectively and brought into compliance. The sales tax team guided TRX from start to finish, optimizing their tax liability across the U.S.
“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.” As filings became due, the team generated tax liability reports to determine the amounts owed to the authorities.
The Commenda platform effectively managed TRX’s sales tax obligations across all 50 states by generating product taxability assessments, tracking nexus, alerting the team when thresholds were surpassed, and flagging notices as needed. As a major player in the health and fitness industry, TRX exceeded the economic threshold in every state. Commenda provided monthly analyses of these threshold breaches and delivered detailed reports that helped TRX clearly identify its nationwide sales tax liabilities.
“The platform works exactly the way I need it to. 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.” To support this process, TRX used Commenda’s exemption certificate management tool, which organizes exempt customer documentation and ensures eligible transactions are properly exempted from tax.
For a company operating at TRX’s scale, registered in all 50 states and responsible for ongoing filing requirements, controlling compliance costs was a top priority. Their legacy providers’ escalating integration and transaction fees made this increasingly difficult. Commenda offered a more sustainable path forward, with all integrations included at no additional cost and transaction pricing at less than half of what they had been paying.
Commenda proved to be the dependable, scalable compliance partner TRX had been looking for.
The Outcome
Through Commenda, TRX achieved a streamlined, right-sized 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 avoided overpaying and brought its compliance costs under control.
With optimized processes in place, TRX is no longer overregistered anywhere, and its risk exposure has been significantly reduced. The Commenda platform played a central role in this outcome — automating nexus monitoring, managing exemption certificates, generating liability reports, and alerting the team to potential issues before they escalated. As a result, TRX now operates with a modernized, efficient tax infrastructure that supports sustainable growth while maintaining full confidence in its nationwide sales tax compliance.
Key Takeaways
- TRX’s newly formed entity inherited a complex compliance footprint that no longer aligned with its actual operations, creating unnecessary cost and risk.
- High integration and transaction fees from legacy providers made it difficult for the company to manage sales tax efficiently at a nationwide scale.
- Commenda delivered the expertise and responsiveness TRX had been missing, providing a more reliable and engaged compliance partnership.
- The platform clarified multi-state obligations through improved nexus tracking, liability reporting, and streamlined exemption certificate management.
- By refining its registrations and strengthening internal processes, TRX reduced compliance costs and built a modern, scalable framework for future growth.