Taxes – And Your Online Business
If you are a neophyte in realm of online business,then perhaps you have a lot of questions that areplaguing your mind and one of them may be all aboutwhether you are obliged to pay taxes for your onlinebusiness or not.
Calculating and paying your duly taxes alone isalready one confusing ride, and surely it will getmore confusing if it will be mixed with an onlinebusiness.
However, as they say, there’s no problem that cannotbe solved. With just a few tips and guides, you canfind out how to pay taxes for your online businesswithout any hassles or problems along the way.
The Charm Of Online Business
Before we talk about taxes and your online business,let’s discuss first why more and more people aregetting attracted to starting their own onlinebusiness.
Well, first of all, it is very hassle-free compared tohaving a business in the non-virtual world. You see,in online business, you only have to type and clickfor your business to boom.
Very minimal manual labor is needed in an onlinebusiness and one can even get to work at home in theirpajamas while managing their online business.
Now the question is: are online businessmen orentrepreneurs exempted from paying taxes? The answeris no. All individuals who are earning money onlineare required to pay taxes.
Sure, the government can’t possibly keep track of howmuch money each person generates online but thenagain, it’s one of the citizens’ responsibilities togo ahead and be responsible enough to pay for theirtaxes.
The Real Deal About Most Online Businesses
The truth is, not everybody who does business onlineis honestly paying their due taxes. Most onlinebusinesses include shopping and it’s a known fact thatmost if not all shoppers despise paying sales tax andadore a bargain that is luxuriously tax-free.
The Internet is actually considered to be a greatvenue for tax-free shopping which lures more and morecustomers each day. Online retailers have been using ano-tax shopping tag line to attract more onlineshoppers to their business.
Sounds like a win-win situation, right? Onlineshoppers enjoy numerous tax-free shopping sprees andonline retailers don’t pay their taxes. Most peopleprobably think that doing business through the
Internet is considered to be tax-free.
However, the fact is, some Internet sales are actuallysubject to what we know as “sales tax” and onlineconsumers are the ones often responsible to remit anyunpaid sales tax on whatever online products they havepurchased.
They can actually remit it directly to their statecome tax-paying time.
Collecting Sales Tax The process of determiningwhether you should pay taxes for your online businessor not may be quite confusing and overwhelming -especially if it’s your first time to get involved inonline business.
However, here are just some few tips you shouldremember: the obligation to pay the so-called “Sales
Tax” can be determined by the location of thecustomers, and not the seller.
If a business does not actually have a physicalpresence in a particular state (an example of thiswould be your online store or business), it is notrequired to collect sales tax from costumers in thatcertain state.