Taxes - And Your Online Business:

Basic Things You Need To Know

So you want to start your very own online business.

Aside from having unlimited access to the Internet,

you also need to be armed with adequate knowledge

about taxes and your online business because without

it, you will surely be at loss.

Online retailers, or more commonly known as e-tailers

are not exempted from paying taxes, contrary to the

common misconception of most people. E-tailers are

still included in the rush for meeting the April 15

deadline for tax filings.

However, veteran e-tailers would say that the most

difficult part for online business owners is

navigating and complying with the confusing and

complicated laws and conditions governing day to day

sales taxes.

An Everyday Challenge If you are one e-tailer who

would like to take your online business seriously,

then you should be prepared to deal with the fact that

handling and managing sales taxes is actually an

everyday challenge.

The truth is, a lot of e-tailers are required by the

government or their state to file and remit sales tax

to states on either a monthly or regular interval. The

basis for the filing of sales taxes would more or less

depend on how much revenue you online business

generates.

Few Tips For E-tailers

It is very vital that you understand your

responsibility for sales tax. You must also know that

the idea that e-commerce companies are required to

collect and remit sales tax in every state is one big

myth.

You only have to pay sales tax if you have nexus in

that certain state. If you are a neophyte in online

business, perhaps you don have an idea what the word

nexus means, right?

Well, in online business jargon, nexus means a

"connection". Put in application, making a sale in

another state does not mean that you automatically

have a sales tax obligation.

You have to put in mind that there are many rules and

laws that you need to consider before you can

determine whether or not you will need to pay for

sales tax in a certain state.

When you create your very own nexus in a certain

state, you are then required to calculate, collect,

report and remit the sales that you make in that

certain state every time you have a transaction there.

This is the reason why you are obliged to pay tax

sales based on the location of your business.

However, you must also keep in mind that there are

also other ways to create your very own nexus in a

state. Aside from physical presence or structure of

your business establishment in a certain state, you

can also establish a nexus by having sales

representatives present in that state, tradeshows,

mobile stores, etc.

Trying to make an online business work amidst the

seemingly confusing and complicated rules that apply

to different states can be quite impossible.

However, one must not lose hope; with the help of

professionals in the legal field and certified public

accountants, you will surely be enlightened as to what

steps you should take for your online business to

stabilize and prosper.

By being armed with the right knowledge about taxes

and your online business will surely help you achieve

success in the realm of online businesses.

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