Taxes - And Your Online Business

(Do You Really Have To Pay?)

If you are a neophyte in realm of online business,

then perhaps you have a lot of questions that are

plaguing your mind and one of them may be all about

whether you are obliged to pay taxes for your online

business or not.

Calculating and paying your duly taxes alone is

already one confusing ride, and surely it will get

more confusing if it will be mixed with an online

business.

However, as they say, there no problem that cannot

be solved. With just a few tips and guides, you can

find out how to pay taxes for your online business

without any hassles or problems along the way.

The Charm Of Online Business

Before we talk about taxes and your online business,

let discuss first why more and more people are

getting attracted to starting their own online

business.

Well, first of all, it is very hassle-free compared to

having a business in the non-virtual world. You see,

in online business, you only have to type and click

for your business to boom.

Very minimal manual labor is needed in an online

business and one can even get to work at home in their

pajamas while managing their online business.

Now the question is: are online businessmen or

entrepreneurs exempted from paying taxes? The answer

is no. All individuals who are earning money online

are required to pay taxes.

Sure, the government can possibly keep track of how

much money each person generates online but then

again, it one of the citizens?responsibilities to

go ahead and be responsible enough to pay for their

taxes.

The Real Deal About Most Online Businesses

The truth is, not everybody who does business online

is honestly paying their due taxes. Most online

businesses include shopping and it a known fact that

most if not all shoppers despise paying sales tax and

adore a bargain that is luxuriously tax-free.

The Internet is actually considered to be a great

venue for tax-free shopping which lures more and more

customers each day. Online retailers have been using a

no-tax shopping tag line to attract more online

shoppers to their business.

Sounds like a win-win situation, right? Online

shoppers enjoy numerous tax-free shopping sprees and

online retailers don pay their taxes. Most people

probably think that doing business through the

Internet is considered to be tax-free.

However, the fact is, some Internet sales are actually

subject to what we know as "sales tax" and online

consumers are the ones often responsible to remit any

unpaid sales tax on whatever online products they have

purchased.

They can actually remit it directly to their state

come tax-paying time.

Collecting Sales Tax The process of determining

whether you should pay taxes for your online business

or not may be quite confusing and overwhelming -

especially if it your first time to get involved in

online business.

However, here are just some few tips you should

remember: the obligation to pay the so-called "Sales

Tax" can be determined by the location of the

customers, and not the seller.

If a business does not actually have a physical

presence in a particular state (an example of this

would be your online store or business), it is not

required to collect sales tax from costumers in that

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