124, RE: charging sales tax|
Posted by Strategist, Sun Apr-29-07 08:16 PM
The answer is that you DO need to charge tax, but what tax depends on your state.
I live in WA State. When I sell ebooks or anything within my state, through the Internet, I have to charge sales tax (city/state) based on my locality.
I do not have to do that for out of state sales because I do not have offices in other states.
When I speak and sell items in the back of the room, I have to pay sales tax according to where I am standing! So far I've "stood" in 16 places ;) Fortunately I send all tax money to the state and then they divey it up and send it to the cities.
WA State is trying to pass a law forcing us to tax everyone! So beware!
I would start with your state tax office and see if they have a sales tax class.
Do your homework. Nothing is worse then finding out at tax time that you owe $30K in taxes. I've had clients and friends who have been in that situation. It pays to take some classes and then talk to your accountant or CPA... have none... get one. They'll save you lots!
Business Strategist, Author, Speaker
and Former Wall Street Trader
We help refugees from Corporate America who have started businesses and want to earn more, work, les and have a quality life.