posted on December 3, 2003 07:57:04 PM new
What is the tax laws on internet retail and do you need a business permit and tax id to buy and sell reguarly on eBay? Should I charge state taxes on my sales. I know the answer would very from state to state. Im from Hardin County, Kentucky -- if anyone on this message board has alot of knowledge on this subject and/or lives in the same state with some idea on this I would greatly appreciate some help. Im wanting to attempt the starting a serious business selling online. Someone may also know where I can find a site that covers these questions. Hope someone can help, thanks.
Hello Friends!
posted on December 3, 2003 08:32:11 PM new
If you are in a city, contact city hall about a business license. If you are in an unincorporated area, it might be on the county level. That is the place to start. For sales tax, that is done on a state level. In California, it is the State Board of Equalization (what a name!) that you put in an application, and you are then licensed to collect sales tax. Actually, if you sell anything in the state, you are required to do so. Then, you basically file depending on your income level (monthly, quarterly, yearly) - Charging a tax is one thing, you actually have to turn that over to the state tax board. They do give you a very small amount for your troubles. I would just browse the net to find out specific info as to what the rules are in your state, as you say, they do vary.
posted on December 4, 2003 06:11:34 AM new
You can also start with your local chamber of commerce. Ours here (Indiana) has packets with information and forms that they give out for people starting new businesses.
posted on December 4, 2003 09:17:08 AM new
Why would you want a state tax number. The only thing that I've found that they are good for is buying for resale. If you give the tax number, it saves you paying the tax on your purchase. However, when you sell the item, the income tax that you owe is based partially on what you paid for the item. If you paid sales tax when you bought it, that is part of your cost, and can be deducted.
Also, if you're selling on the internet, a very small percentage of your sales will be within your state. Hardly worth the trouble of reporting to your state tax dept. (That last statement might come back to bite me in the a**.)
Anyway, WELCOME TO VENDIO!!
posted on December 4, 2003 09:21:23 AM new
If you're going to set up a legitimate business, then you are going to have to get a tax ID number and collect sales tax. It is probably illegal in most states not to do so. I don't live in a state that has sales tax, but when I did, it really was not difficult to do. I was able to only file annually because most of my sales were out of state. It took me perhaps 30-40 minutes of my time PER YEAR to deal with sales tax. The biggest pain was customers not paying sales tax, that was the most annoying part (and you will get customers on ebay who think you are scamming them, and want your information, which for me was never a problem to give, I even gave them the phone number to the state board of equalization and asked them to call and confirm that I was licensed and OBLIGATED to collect sales tax)
posted on December 4, 2003 09:44:59 AM new
In CA, you can get a Sellers Permit without having a business license. I have one & don't have to pay any sales tax on my purchases for resale. At least 90 per cent of my sales are out state, so I don't have collect any sales tax on them. It is really a plus for me. For instance, I bought set of china for $350.00, the sales tax in this county would be $27.13. I will ship this set to Replacements Ltd. Thats a great savings for me.
