# Create and activate a company

Source: https://developer.avalara.com/avatax-dm-combined-erp/common-setup/configure-your-account/create-company/

# Create and activate a company

The Avalara Knowledge Center provides detailed information about how to set up a company, including the [information you need to collect](https://knowledge.avalara.com/bundle/dqa1657870670369_dqa1657870670369/page/What_you_need_to_create_a_company_profile.html), [adding your company information](https://knowledge.avalara.com/bundle/dqa1657870670369_dqa1657870670369/page/Add_your_company_information.html), and [specifying where you will collect taxes](https://knowledge.avalara.com/bundle/dqa1657870670369_dqa1657870670369/page/Tell_us_where_you_collect_and_pay_tax.html).

For the purposes of this integration guide, we will walk through the setup process for creating a company in the Sandbox environment. Technology partners have the option to create a test company with generic information; API customers may want to use their actual company information.

1.  Sign in to your AvaTax [Sandbox](https://sandbox.admin.avalara.com) environment.
    1.  Check your email for the confirmation you received from Avalara when you signed up for your account.
    2.  Sign in to your account using the username and link in your confirmation email.
    3.  Follow the prompts to create a new password.
    4.  Click **I accept** to the Terms and Conditions.
2.  Click **Get Started** to begin the walkthru for adding a company. The first step is to specify a name and taxpayer ID for the company, and then click **Next**. This information is not verified, so technology partners can specify a generic name and taxpayer ID.
3.  Enter a mailing address for your company. Validate the address, and then click **Next**.
4.  Once you've validated your company's primary address, AvaTax enables tax collection in that [jurisdiction](https://knowledge.avalara.com/bundle/dqa1657870670369_dqa1657870670369/page/Local_jurisdictions.html). The next step is to add more regions where this company will collect tax. Click **Yes, add more US regions**, then choose **Select from a list**.
5.  For the purposes of this integration guide, we recommend that technology partners enable jurisdictions in locations where they will perform test transactions. To run the test transactions included in this guide, you must also enable tax collection in the District of Columbia. Click **Add selected regions** when you are done.
6.  For regions where a sales and/or sellers use tax could apply, you will be prompted to specify the type of tax to collect. For technology partners and for the sake of testing, select **Sales or sellers use tax**. For merchants and API customers, the tax type you select should match the tax return you need to file. Click **Next** when you are done.
7.  When prompted to confirm whether this company is registered to collect and pay tax in other countries, make your selection based on the scope of your integration. If you are finished, click **No, where I collect tax is complete**.
8.  A confirmation page opens. Click **Done with tax jurisdictions**.
9.  Finally, click **Activate Company** to begin using AvaTax.

![](https://www.avalara.com/content/dam/assets/ui/screenshots/activate-company.png)

**Advice:** You have the option to create multiple company profiles within a single AvaTax account. If you create multiple company profiles, you must designate one company as the default company.

Avatax uses company codes to designate which company profile processes the transaction. When creating transactions in AvaTax, if the company code is not specified, then the default company code will be used to process that transaction.

You also have the option of setting up a hierarchy of companies in a parent-child relationship. More information about adding child companies is available in the "Set up a hierarchy of subsidiary companies" topic in this guide.

[Previous](/avatax-dm-combined-erp/common-setup/configure-your-account)

[Next](/avatax-dm-combined-erp/common-setup/configure-your-account/erp-hierarchy)