What is the Internet tax law for sales and use for a small Texas business?

Question

If I am renting equipment and shipping it to different states, How do I do this tax free? Where can I find the tax law and guidelines?

Answer 1

I agree with the first person.

Basically, so far, on the Internet, the precendent is to charge sales tax for sales delivered in Texas if your business is based in Texas. Supposedly, it is the responsibility of the seller, out of state, to pay their own state's sales tax on their purchases from Texas.

What you also need to be aware of is that if you are a business is Texas and you purchase products out of Texas, say from California, and you get these products sales-tax-free, you are supposed to report it to Texas (and pay sales tax to Texas) for those purchases unless you resell the products and collect sales tax on your item then.

The organization that oversees Texas sales tax is The Comptroller of Public Accounts at http://www.window.state.tx.us/taxinfo/sales

Answer 2

you do not desire to get a tax identity, really in case your income is small. record a kind 1099. The IRS is following e-bay revenues further and extra even though it don't understand to what volume. in reality you're including your revenues on your income and pay taxes sames continuously - too a lot!

Answer 3

generally anyone from outside of the state you are operating in is tax exempt. orders from within the state you are operating in are taxable