Ok..so I've developed a product that I plan to sell online only, no brick and mortar. From what I've read at the comptroller site I would be required to tax only the sales to fellow residents in my state.
1. So.....to avoid the paperwork and hassle, can't I just refuse to ship/service my states online customer?
I hate doing that, but I haven't even had a test run of my product yet, and really don't want to file for a tax# right now.
I could easily sell on ebay and not worry about it, but I think ebay is greedy based on what they charge for their stores, listing fees, final value fees, etc..
2. How would the state even know I exist if I'm not a corporation, and I don't have a DBA? I know I can be found on the WHOIS listing for the domain registration, but..that can be hidden too...for a fee! :)
3. Is there a way to set up a shopping cart that would automatically refuse a certain states order?
2007-02-28 05:29:08 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Another point...you may do well to keep yourself well hidden from your taxing authorities; but one of your out of state customers may be purchasing your product through a business. They will be claiming the expense on their taxes. If they are audited, it will eventually lead to you.
Don't risk it. Paying taxes means you are making money. I would rather make money and owe the taxes, than owe no taxes at all.
In Texas the form for a tax ID# is very simple & it is free. Paying the taxes is as simple as filling out a short form (not even 1/2 a page) or calling them in to an 800#. I can't imagine other states are very different from that.
If you are using something like Quickbooks, keeping track of sales tax will be a BREEZE.
Do things right from the beginning and have a clear conscience. Think about your business plan and I hope you do great!
2007-02-28 06:46:34 · answer #1 · answered by T H 4 · 0⤊ 0⤋
You can, but you'd pretty quickly get a reputation for crap customer service. Personally, I wouldn't buy from you. That sounds like a REAL intelligent business plan -- alienate your customer base first.
If you're on the web, you're public. If you want to hide from your state tax authorities, you'll have to hide from your potential customers as well. You think maybe that the state Department of Revenue is staffed by a bunch of aged trolls that never heard of the Internet?
If you have a store presence on eBay, you'll have to charge state sales tax. And eBay will probably have a problem with you refusing sales as a tax dodge. You're only kidding yourself if you think otherwise.
What you need to do first is develop a proper business plan. It appears that you have no clue about running a business and that will damn you to failure before you even have your first sale.
2007-02-28 05:45:07 · answer #2 · answered by Bostonian In MO 7 · 2⤊ 0⤋
I'm not sure why you'd want to refuse the orders, especially when you could be increasing your income by those sales.
I realize that the collection and remittance of sales tax is a pain, but for the same efforts you are going to be putting into refusing customers, you could be adjusting to sales tax.
Also, if you sole proprietor (not corporate) you'd probably report your income on schedule C for federal purposes. I'm guessing you have state taxes and usually you have to send a copy of the federal in. That might be how they discover you.
It is a LOT easier to deal with setting up compliance now then trying to sort through and assessment later.
2007-02-28 05:38:31 · answer #3 · answered by Molly 6 · 0⤊ 0⤋
Phew... that turned right into a rant! :-) Too proper notwithstanding, i imagine it really is outrageous. My council tax is £1300 a year for a one bedroomed flat with a communal bin that receives emptied once per week. The grounds must be maintained by the voters, even notwithstanding they're owned by the borough of Camden. I comprehend the favor for council tax notwithstanding it type of feels intense. including a refuse series cost on genuine of this can be disgraceful. i'm bored stiff of anybody from politicians to organizations leaping on the fairway bandwagon for no longer some more thing suitable than PR and/or commercial benefit. I extra appropriate provide up now, am starting off to rant also
2016-12-05 01:46:37 · answer #4 · answered by Anonymous · 0⤊ 0⤋