In no way am I meeting the threshold in my state, so I am not going to worry about it.
Me neither. (Nexus rules are the same as your state.)
They donāt make this easy! I got my EIN already. I went to the Georgia Tax Center site to register there and I am in a āSubmittedā status now. I am still a bit unsure how I proceed on the sales tax. I stupidly thought I could turn that in at the end of the year with my 1099 but have certainly learned differently. Technically I am past due in filing those but I have not sold anything this year in GA to have to pay any so hopefully there wonāt be a penalty for being late on 0.00. Basically I never sell anything in GA, LOL! It does say they have to be filed even when nothing. What a pain in the butt this all is!
Exactly this.
There is a program called Tax Jar which can collect and remit all of the taxes automatically. Most people here wouldnāt benefit from it , but it may help reduce the headache for high volume sellers and for those with multiple streams of income.
Unless your business meets your stateās threshold, you are not required to collect sales tax.
Tax free states donāt need a license!! You just put NA when they ask for it. Took less than an hour for me to be approved.
Yes~I live in Spartanburg, SC~I went to check prices for 1 & it said I didnāt need 1 ~as Iām a SOLE PROPRIETOR
I canāt read this whole thread tonight, can someone link me to the original message? I want to understand this fully.
Thank you
Gabriell
My state is not tax free, but according to what I read I donāt need a tax license unless I sell more than 100,000 worth of goods or do more than 100 sales a year. Definitely not a problem.
I filled out BBās form, but it was denied. Seems like they want me to pay $70 for a license that my state says I donāt need.
So my understanding is that the $100,000 or 200 transactions is how the economic Nexus is calculated for sales across the internet by those outside your state selling to people in your state. (Or you selling across the internet to another state.) This is why when you sell on Ebay/Amazon/Etsy etc. They collect sales taxes for you on the sale because they have a large economic nexus into pretty much all the states.
But I thought if you sell in the state you reside in then you have physical nexus there and have to pay sales tax regardless of how much you sell per year even if it does not meet the $100,000 or 200 transactions. (Which is the same parameters for GA). I may need to call the GA Dept. Of Revenue back and ask that specific question.
Physical presence nexus means a business has a direct connection to a state ; that connection allows the state or locality to levy sales tax on purchases from that business and imposes requirements to collect and remit taxes.
If I am going to register as a business, do I register as a sole proprieter? LLC?
Im so confused and worried because I want to get my taxes correct and I sell a lot
Iād sooner not sell to anyone in my state than deal with any of this.
Bad enough we have to file a 1099 on our personal taxesā¦i am not going to file seperately as a business by getting an EIN just to buy a few reborn supplies āwholesaleā ā¦andā¦have to file a business return on top of that.
Although I suppose by filing as a businessā¦you dont have to file the 1099ā¦so it could just be a trade off.
I dont think what i would save on wholesale prices would even begin to cover accountants fees to fike business taxes.
I probably buy less than 200 total in any given year from bbā¦
Thank you!! It worked!
From my last phone call with Louisiana Department of Revenue, the thresholds only apply for out of state sales. As an online seller, I must have a Sales Tax Certificate and report my earnings(all sales regardless of location) monthly, even if it was $0.
So, I encourage all to contact their state revenue departments for clarification.
That was how I understood it for GA too. We all are supposed to be reporting sales taxes quarterly even if they are 0. We all are supposed to have a Sellerās permit (except the states who do not pay sales taxes not sure about those.) We all have to have an EIN to file schedule C on taxes as a business and deduct business expenses. If not doing that then you will not need an EIN and will file as a hobbyist and report all your income according to your 1099 from PP and other sources you sell through on Schedule 1, line 8 of Form 1040. You will not be able to deduct expenses filing as a hobbyist. Regardless of whether or not you want to apply to be a member of the wholesale BB site, these things need to be clarified for each of us for this new 1099 reporting.
I pay taxes on orders from BB. Actually everywhere charges me tax on online orders. . Is that what we are talking about or am I confused?
Do you live in US? Im in texas the invoice never shows a tax amount.
Iām in California. I get charged tax on online purchases.
Yes, Im in IL.
Do you mean purchases frm bb? If you do mean bb, i am way beyond understanding any of this tax blank!