I have some inquiries on business taxes for my online store. For example, if I charge sales tax on an order, is the state in which I charge the tax or the state to which I am sending the package?
Do I record that percentage and give it to my state when taxes are due?
I’m not sure who to pose this question to because I can’t locate the solution on Google.
I’m switching to my own Squarespace store from Etsy. I possess the necessary business certificates and sales tax licenses. However, I’m not sure how to use it properly
I was genuinely at a loss for words. Although I have a sales tax certificate (retail merchant licence), I think what I really want to know is how internet retailers handle sales taxes in general.
Which platform does your website run on? It should be possible for you to set up tax collection using that. Typically, collecting is limited to the state in which you have a nexus. Therefore, if you’re just in one state, it’s quite simple. After that, you’ll pay the state your sales taxes, usually every quarter.
The use of Squarespace is mine. Thank you; it makes sense. Just to be sure, did I have to charge the sales tax for the state of Michigan? not the place where it is being shipped, either
Based on the delivery address, sales tax is applied. Additionally, some states impose sales tax on delivery charges. Some people don’t. You must become acquainted with NEXUS. It is highly recommended that you consult with an accountant and invest in software that will manage your taxes automatically.
Thank you; I agree. Yes, I had a conversation with someone. My home state is all I have to go by. I don’t know why it was so hard to find the words “if you’re a small business owner operating out of your home and only have nexus in that state, you charge your state or county tax percentage and collect that and pay it when due on every order” I hope this clarifies things for anyone else who might be confused or needs an explanation differently
It’s not quite that easy, though. You won’t be able to easily find the information because of this. The majority of people who work in your field are ignorant of the rules and laws and don’t give a damn about them until they receive notices indicating they owe money or something else. The requirements vary from state to state and are determined by the amount of business you conduct elsewhere, not in your home state. Thus, you might need to register, file sales taxes, and possibly other taxes or fees in a state where you receive a lot of orders. Because there are multiple layers of government in the US and no single set of taxes or rules, there are some strange challenges to prepare for.
You and I both agree. Setting up my small shop has taken me weeks because I had to apply for the necessary licenses and other permits. I think I’m going about things the correct way. All I want is to avoid making mistakes in the end. Indeed, in the majority of states, it sells more than 100,000 units or something similar. I won’t be acting in that manner at all!
