what defines an internet sale from a tax point of view?

Question

I understand that internet sales are non-taxed. If this is true then what legally constitutes an internet sale?

Answer 1

What ever State you live in you must collect the tax on all sales in that state. If you have a business registered in Nevada, Wyoming
or another tax free state, and your company is located outside that state, then you will pay income tax to the state you operate in. If no other state claims your company and you do business in California, that state will tax you on gross sales for the year even if you are registered in another state. To avoid problems here is the simple answer. Form a c corp. Hire it to manage your business and pay yourself a base salary. Fill out the paperwork with the Secretary of states office as a foreign corporation and pay the fees. open a corporate bank account in the tax free state where you have incorporated and set up a payment plan for your salary with deductions automatically with the bank. All state and federal taxes will be deducted. As an "employee" operating outside of the corporate state, no state can lay claim to your corporate tax if your base location is in a tax free state. Hire a lawyer as a registered agent and all mail will be sent to his/her office and fore-worded back to you in what ever state you live in.
There you have an address, bank account, legal representation and a tax free corporation with no sales tax owed any state in which you have no physical holdings and no state can claim you as a taxable corporation. You will only pay federal tax and the minimum at that.

Answer 2

Out of state sales are not taxed because legally you are supposed to pay tax in your home state. If you buy merchandise from an in state merchant they will charge sales tax.

Answer 3

DB is totally right. Out of State sale.