How To Correctly Use Sales Tax For Your Own Online Business

Sales tax can be confusing for the new business owner, who does everything entirely online!

Don’t worry, here are the most important things you need to know!

This is a sponsored post. All thoughts and opinions are 100% my own.

Does Every Online Business Have Sales Tax?

Yes, and no.

If you sell products across the country, you need to learn what states require this tax, and which ones do not.

You also need to follow what is called “remote seller” laws, and register with each state that requires internet businesses to do so.

First, let’s establish a few necessary points. If your online business is….

• Selling Goods Over The Internet To States That Are Not Your Own
• Delivering Said Goods To Customers Within States Your Business Has Presence
• Is Established, and Incorporated, in Your Home State

You will need to comply with state tax laws.

Selling Goods To Other States

For example, if you sell quilting patterns to customers in other states, you must comply with the individual state tax rules regarding sales.

Sales tax must be billed, collected, and remitted to that particular state where the product is shipped.

What’s A Nexus?

If you’re selling goods to states where your business has a presence in the state of delivery, you have what is called a Nexus. The definition of how this Nexus is established varies from state to state.

To make sure you are compliant with all laws and regulations, you need to have solid sales tax support for your business.

How Is My Business Established in My Home State?

When you open a brick and mortar location or register your business through an LLC, for example. There are strict rules for the ways you can determine if you have a real, psychical presence in a state.

It’s a smart move early in the beginning of your online business journey, to find an appropriate sales tax service.

Why Are Sales Tax Services Important?

Every business needs consultants, and experts, to share their expertise.

Getting a business account, financial consultant, and a reputable sales tax filling service will help eliminate a lot of headaches in the future.

When it comes to the important factors of your WAHM business, like financials, it’s important to have a team of professionals on your side.

Many businesses struggle with their sales tax solutions when it comes to online sales because the laws vary per state so widely.

With laws changing ever so often, it’s important to keep up to date with new information.

Amazon Sellers Be Wary!

A lot of WAHM Businesses depend on fulfillment centers, like Amazon, for the shipping of their products.

But did you know that these don’t keep you void of the tax laws?

Because you have inventory, and delivery,  via Amazon in another state, you still are subject to these tax laws.

An Affiliate Nexus, for example, is just another way you are held to compliance, without realizing it.  Your business financial team should be aware of each place online you are selling goods and services.

The financial team can help determine where and how you have a presence, psychical or not, and are held subject to the varying tax laws affecting your business.