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.
- Anonymous7 years agoFavorite 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.
- troLv 77 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
- Cathi KLv 77 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.