Anonymous asked in Business & FinanceTaxesOther - Taxes · 7 years ago

New Online Business (Sales Tax Information)?

Hello about 2 years ago I have created an online side business selling stuff online. At first it was small and and extra income, but lately it has turned into a full business with a storefront. I need to understand the taxes.

What I do is pretty much buy certain things off my customers,and then sell them across the country online. So, researching the sales taxes I came across an article stating that if I do not have a physical location in a state where I sold the product, I would not have to pay collect sales tax.

Can anyone go further on this - is this true and I need a little more information I am still a bit lost.

3 Answers

  • Anonymous
    7 years ago
    Favorite Answer

    Generally that's true. You only have to collect sales taxes on the states you or your employees or buildings are physically present in. Talk to an EA or CPA about your business and they will advise you.

  • tro
    Lv 7
    7 years ago

    first of all, if you are not registered with the sales tax agency of any state, regardless of where it is you cannot legally charge and collect sales tax, it is not your money it belongs to the state

    and if you have an actual store you absolutely will have to be registered with that state

    selling on the internet to people in many states, no you were not required to collect sales tax

  • 7 years ago

    You need to go to your local office that handles sales tax and ask them. They will have the literature and education on it for you. You should have done this 2 years ago. You may get audited for it and have to make it up.

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