Online Business And Taxes - Questions, Questions, Questions!

Before, garage sales and flea markets were the most
popular venues for selling pre-owned or used items
that you would want to get rid of and at the same time
earn money from. However, thanks to the technological
developments that have happened through the years, we
can now have easy access to the Internet and have the
options to sell our stuffs there.

If you have been selling your stuffs on the Internet
and if you still have future plans to do so, you might
want to consider taxes and your online business before
you continue with it.

Selling On eBay Or From Your Own Website

A lot of people today are getting attracted by the
fact that they can actually sell almost anything on
the internet by just posting it on eBay, their own web
site or any other site that offers practically the
same services.

However, what most people don’t know is that there are
actually rules and laws that cover selling items on
the Internet.

Getting Serious In Your Online Business

If you have been selling your stuffs for quite a long
time already, you may consider it as an
income-generating activity, right? Having an online
business really has a lot of perks and advantages such
as being able to work right at home, not having to
have your own boss, etc.

However, having an online business doesn’t mean that
you are free from paying your taxes. When you decide
to be more serious about your online business, there
are a lot of things you have to consider.

Perhaps the first and most important thing you have to
consider is the legality of your online business. Make
sure that you are not breaking any rule or law so that
you and your reputation won’t be in jeopardy.

In addition to that, you must be aware of the several
laws that come along with online businesses such as
tax rules.

You have to be aware of the different taxation
conditions of different states and countries because
since you will be having a business online, people
from different parts of the world will more or less
become your customers or potential business partners.

You must also be aware of the process for paying
federal and state taxes for online businesses. Maybe
you will have some questions such as:

"Do I need a tax ID number?", "Do I need to file
specific paper works or forms?", "How do I begin to
pay federal and state taxes?", etc.

Some of the basic things you need to know about having
a legal online business is that your business is
actually the one that will pay income taxes in pretty
much the same way it would if it were a
brick-and-mortar kin of business.

The address for filing you income tax will be the
principal business address of the entity. The laws of
the particular states that you transact or have
business with are the ones that would determine
whether you will be required to pay state income
taxes.

You should also be aware that a lot of states impose
"sales" taxes on items that are purchased by the
residents of their state. For you not to get in
trouble or end up getting dazed and confused with the
many laws and conditions of taxes and your online
business, you can try to consult a lawyer
knowledgeable in these matters.

Dan and Deanna "Marketing Unscrambled"