But I'm not live yet and it would be nice to hear about the various laws from someone who has been there and done that.
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10 replies to this topic
#1
Posted 14 September 2002, 16:52
I think I know what I need to know to do business and I have a good accountant But I'm not live yet and it would be nice to hear about the various laws from someone who has been there and done that.
But I'm not live yet and it would be nice to hear about the various laws from someone who has been there and done that.
-Spiff
#2
Posted 19 September 2002, 23:43
Hi Spiff,
Disclaimer: I'm not a lawyer or an accountant.
A couple of things you should be aware of....if you are based in a state that has a sales tax you must charge the tax to your home state customers unless there is an exception for that in your state. You may have to charge other states sales taxes depending on the particular state laws. If you are shipping using the US Postal Service you should take a look at the applicable postal regulations and interstate commerce laws.
Disclaimer: I'm not a lawyer or an accountant.
A couple of things you should be aware of....if you are based in a state that has a sales tax you must charge the tax to your home state customers unless there is an exception for that in your state. You may have to charge other states sales taxes depending on the particular state laws. If you are shipping using the US Postal Service you should take a look at the applicable postal regulations and interstate commerce laws.
Kim
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#3
Posted 20 September 2002, 02:34
Generally you only have to collect sales tax from a state(s) where you conduct business or have a nexus with a state.
President Bush signed into law a two year moratorium that prevents state and local governments from imposing new taxes on Internet businesses. Which will be up in Dec next year.
Some states are trying to broaden what a nexus is with a State. Example, your website is hosted in New York State but your business is in Georgia, the state of New York says well a nexus exist so you must pay New York sales tax. Some States have argued that calling on customers in their state creates a nexus.
Now most states have "use" taxes. Which means if I live in Colorado and order a new set of skis on the internet, mail order or by whatever means, out of state, by law at the end of tax year I have to pay Colorado sales tax on the skis. Most states do not enforce this, simply because they don't have the manpower. Some states are trying to get the Shipper(your business) to send information about the buyer to his or her state so they can insure that the proper sales tax is paid by the buyer, imagine if you had to do that for fifty states!
I wonder what is going to happen in Dec' 03, sales tax gone mad? Ah! Just in time for Christmas!
President Bush signed into law a two year moratorium that prevents state and local governments from imposing new taxes on Internet businesses. Which will be up in Dec next year.
Some states are trying to broaden what a nexus is with a State. Example, your website is hosted in New York State but your business is in Georgia, the state of New York says well a nexus exist so you must pay New York sales tax. Some States have argued that calling on customers in their state creates a nexus.
Now most states have "use" taxes. Which means if I live in Colorado and order a new set of skis on the internet, mail order or by whatever means, out of state, by law at the end of tax year I have to pay Colorado sales tax on the skis. Most states do not enforce this, simply because they don't have the manpower. Some states are trying to get the Shipper(your business) to send information about the buyer to his or her state so they can insure that the proper sales tax is paid by the buyer, imagine if you had to do that for fifty states!
I wonder what is going to happen in Dec' 03, sales tax gone mad? Ah! Just in time for Christmas!
#5
Posted 22 September 2002, 09:40
I have had fedex tell me they require a business tax number for each shipment and if the shipment is going to a non-business client then i must provide the clients SSN .....wow... i cant imagine that any client would give his/her credit card number along with the Social Security Number...how could i ask for such a thing.....what safe gaurds do i need to store such information.....I just can't beleave what this world is coming too...big brother is watch us very closely
http://www.customs.gov/impoexpo/import.htm#Import
IMPORT REQUIREMENTS
"The U.S. Customs Service does not require an importer to have a license or permit. Other agencies may require a permit, license, or other certification, depending on what is being imported. Customs entry forms do ask for your importer number. This is either your IRS business registration number, or if your business is not registered with the IRS or you do not have a business, your social security number. "
is this the way business operates?
crshNbrn
ps
Look at what we ship
http://www.betterthannature.com/catalog/
http://www.customs.gov/impoexpo/import.htm#Import
IMPORT REQUIREMENTS
"The U.S. Customs Service does not require an importer to have a license or permit. Other agencies may require a permit, license, or other certification, depending on what is being imported. Customs entry forms do ask for your importer number. This is either your IRS business registration number, or if your business is not registered with the IRS or you do not have a business, your social security number. "
is this the way business operates?
crshNbrn
ps
Look at what we ship
http://www.betterthannature.com/catalog/
crshNbrn living on the edge.....
#6
Posted 23 September 2002, 02:19
That sounds like FEXED needs YOUR tax id on file. They need to
know who you are.
I ship TO Canada alot and just need to include 5 copies of
the commerical invoice.
I would take a package to the FedEx counter and ask them what
you need... They will know what you need in REALITY!
tom
know who you are.
I ship TO Canada alot and just need to include 5 copies of
the commerical invoice.
I would take a package to the FedEx counter and ask them what
you need... They will know what you need in REALITY!
tom
Thomas A. Moulton, W2VY
osCommerce core developer
Support the developers!
http://www.oscommerce.com/about/team
osCommerce core developer
Support the developers!
http://www.oscommerce.com/about/team
#7
Posted 21 November 2002, 00:46
Quote
I have had fedex tell me they require a business tax number for each shipment and if the shipment is going to a non-business client then i must provide the clients SSN .....wow... i cant imagine that any client would give his/her credit card number along with the Social Security Number...how could i ask for such a thing
IMPORT REQUIREMENTS
"...if your business is not registered with the IRS or you do not have a business, your social security number. "
IMPORT REQUIREMENTS
"...if your business is not registered with the IRS or you do not have a business, your social security number. "
As you can see from your previous post, it is YOUR SSN that they are after, not your customer's.
#8
Posted 21 November 2002, 02:12
I think that fedex person is very mis-informed.
I ship to Canada all the time and all they need it the name
and address...
tom
As you can see from your previous post, it is YOUR SSN that they are after, not your customer's.
I ship to Canada all the time and all they need it the name
and address...
tom
Quote
Quote
I have had fedex tell me they require a business tax number for each shipment and if the shipment is going to a non-business client then i must provide the clients SSN .....wow... i cant imagine that any client would give his/her credit card number along with the Social Security Number...how could i ask for such a thing
IMPORT REQUIREMENTS
"...if your business is not registered with the IRS or you do not have a business, your social security number. "
IMPORT REQUIREMENTS
"...if your business is not registered with the IRS or you do not have a business, your social security number. "
As you can see from your previous post, it is YOUR SSN that they are after, not your customer's.
Thomas A. Moulton, W2VY
osCommerce core developer
Support the developers!
http://www.oscommerce.com/about/team
osCommerce core developer
Support the developers!
http://www.oscommerce.com/about/team
#9
Posted 06 December 2002, 17:01
Quote
Generally you only have to collect sales tax from a state(s) where you conduct business or have a nexus with a state.
President Bush signed into law a two year moratorium that prevents state and local governments from imposing new taxes on Internet businesses. Which will be up in Dec next year.
Some states are trying to broaden what a nexus is with a State. Example, your website is hosted in New York State but your business is in Georgia, the state of New York says well a nexus exist so you must pay New York sales tax. Some States have argued that calling on customers in their state creates a nexus.
Now most states have "use" taxes. Which means if I live in Colorado and order a new set of skis on the internet, mail order or by whatever means, out of state, by law at the end of tax year I have to pay Colorado sales tax on the skis. Most states do not enforce this, simply because they don't have the manpower. Some states are trying to get the Shipper(your business) to send information about the buyer to his or her state so they can insure that the proper sales tax is paid by the buyer, imagine if you had to do that for fifty states!
I wonder what is going to happen in Dec' 03, sales tax gone mad? Ah! Just in time for Christmas!
President Bush signed into law a two year moratorium that prevents state and local governments from imposing new taxes on Internet businesses. Which will be up in Dec next year.
Some states are trying to broaden what a nexus is with a State. Example, your website is hosted in New York State but your business is in Georgia, the state of New York says well a nexus exist so you must pay New York sales tax. Some States have argued that calling on customers in their state creates a nexus.
Now most states have "use" taxes. Which means if I live in Colorado and order a new set of skis on the internet, mail order or by whatever means, out of state, by law at the end of tax year I have to pay Colorado sales tax on the skis. Most states do not enforce this, simply because they don't have the manpower. Some states are trying to get the Shipper(your business) to send information about the buyer to his or her state so they can insure that the proper sales tax is paid by the buyer, imagine if you had to do that for fifty states!
I wonder what is going to happen in Dec' 03, sales tax gone mad? Ah! Just in time for Christmas!
Not sure if you mentioned this or not, but states can only collect tax from you if you have a physical presence in that state, cause you are creating nexus in that state. For example, and this is what my company has to do whenever there is a hosting change. We have an office in NH, (our HQ), we have a warehouse in OH, we have a retail outlet in VT, we are hosted in MD. We charge tax to OH and VT residents. Theres no sales tax in NH, we lease our equiptment from the hosting company in MD so we dont have a physical presence in MD. If you are renting space on a server that doesn't count as a physical presence and therefore you are not creating nexus.
Please, please be very careful concering the issue of taxes, some states dont understand this and will fight you even if they are wrong, please consult a licensed tax attorney.
#10
Posted 17 January 2003, 00:00
Here is some general information that I found. Also applies to cyber/internet business.
Please consult a tax accountant and/or attorney
where you will be doing business BEFORE you open the "doors" to your business.
===============================================
Business License:
The licensing requirements to do business are almost entirely up to the
specific state and city where they apply.
There are many kinds of licenses. One kind is called a Doing Business As
(DBA). It registers the name of a business so you can open a bank
account under that name and cash checks made out to your business.
Each state has its own laws regarding the use of trade names for
businesses.
The best way to access those laws is by going to the
official website of the state(s) in which you will be doing business.
Small Business Administration.
http://www.sbaonline.sba.gov/world/states.html
===============================================
Business Organization:
There are many forms of legal structure you may choose for your
business. The most common structures are Sole Proprietorships,
General and Limited Partnerships, C and S Corporations and
Limited Liability Companies.
Each legal structure offers organizational
options which are appropriate for different personal situations and
which affect tax and liability issues.
I suggest you research each legal structure thoroughly prior to making your decision.
===============================================
Sales Tax Number:
In each state, there is a specified percent sales and use tax which
applies to the retail purchase, retail site, rental, storage, use or
consumption of tangible personal property and certain services.
In other words, sales tax must be collected on just
about every tangible item sold.
A sales tax number is required for each business before opening.
The number, plus instructions for collection, reporting and remitting
the money to the state on a monthly basis, can be obtained from the
Small Business Administration.
http://www.sbaonline.sba.gov/world/states.html
Please consult a tax accountant and/or attorney
where you will be doing business BEFORE you open the "doors" to your business.
===============================================
Business License:
The licensing requirements to do business are almost entirely up to the
specific state and city where they apply.
There are many kinds of licenses. One kind is called a Doing Business As
(DBA). It registers the name of a business so you can open a bank
account under that name and cash checks made out to your business.
Each state has its own laws regarding the use of trade names for
businesses.
The best way to access those laws is by going to the
official website of the state(s) in which you will be doing business.
Small Business Administration.
http://www.sbaonline.sba.gov/world/states.html
===============================================
Business Organization:
There are many forms of legal structure you may choose for your
business. The most common structures are Sole Proprietorships,
General and Limited Partnerships, C and S Corporations and
Limited Liability Companies.
Each legal structure offers organizational
options which are appropriate for different personal situations and
which affect tax and liability issues.
I suggest you research each legal structure thoroughly prior to making your decision.
===============================================
Sales Tax Number:
In each state, there is a specified percent sales and use tax which
applies to the retail purchase, retail site, rental, storage, use or
consumption of tangible personal property and certain services.
In other words, sales tax must be collected on just
about every tangible item sold.
A sales tax number is required for each business before opening.
The number, plus instructions for collection, reporting and remitting
the money to the state on a monthly basis, can be obtained from the
Small Business Administration.
http://www.sbaonline.sba.gov/world/states.html
#11
Posted 17 January 2003, 00:10
Quote
President Bush signed into law a two year moratorium that prevents state and local governments from imposing new taxes on Internet businesses. Which will be up in Dec next year.
I wonder what is going to happen in Dec' 03, sales tax gone mad? Ah! Just in time for Christmas!
I wonder what is going to happen in Dec' 03, sales tax gone mad? Ah! Just in time for Christmas!
Actually, the Moratorium was created in 1995 for two years under the Clinton Administration. It has continually been extended with the last extension coming under George Bush.
Wayne Luke
