zaterdag 22 oktober 2016

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

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

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't 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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