How do i charge sales tax when i'm selling to all states?

Question

I live in CT, the highest taxed state, do i have to charge sales tax to people i am shipping to out of state? I havent started my online retail business yet, but i want to be clear on this. I have a federal ID number but not a state sales and use tax ID number yet.. I want to know what i have to do about charding CT sales tax to people out of state? it seems like i can loose business just because of the state i live in no matter how competitive my prices are.

Answer 1

You would only charge sales tax to buyers in CT if you are selling online. If you have a retail store and someone from out of state comes in and buys something, you'd have to charge the sales tax.

Answer 2

You should charge sales tax on goods shipped t CT addresses, but not to other states. Congress has passed a law stating that states can't make a company pay sales tax if the company doesn't have an office in that state.

Answer 3

I have a business in MA and we ship all over the US. We do not charge sales tax to clients in any state except MA. I keep track of all in-state taxes that I collect and pay MA their share quarterly.
Check on the CT state website, but I have never heard of a company charging tax to out of state customers.
If you have a large company - with offices in other states - then you must collect tax for customers in those states too.
Good Luck!

Answer 4

you do no longer pay tax on your employer. once you're making a sale out of state, you do no longer fee tax as long as you're turning in it out of state, save transport receipts to coach a sale in interstate commerce that's exempt from tax. Your client owes revenues tax to the state they're in. If the customer alternatives it up in spite of if, they owe the tax.

Answer 5

You should only have to charge state sales tax to those customers located in your state.

Out of state customers should not pay state sales tax.