Taxes & Your Online Business (Pt 1)
Taxes - And Your Online Business (pt. 1)
Trying to land a great job which gives a good pay is
quite difficult to do these days. Not everyone can
actually have the job of their dreams with a good
salary to boot that’s why more and more people are
resorting to having their very own online business to
suffice their needs and wants. If you are one of the
many people who is interested in starting your very
own online empire, you should be aware of the basics
of taxes and your online business.
More Than Just Social Networking
More often than not, people initially become exposed
to the wonders of the Internet, thanks to social
networking sites or online games. However, people mature and their interests expand beyond just meeting new
friends and people. They become more interested in
exploring the income-generating power that can be harnassed by using the world wide web.
If you have the skills required to create a website and promote it, you can go a long way in the realm of online
business. With a laptop and an internet connection, you could potentially become the next household name billionaire without ever leaving your house! But first...
Know The Basics Of Starting An Online Business
Once you decide to start your very own online business, you
have got to ditch your amateurish ways of thinking and
move on to more professional and business-minded
The first thing you should know when planning to start
an online business is that you are not exempt from
the responsibility of paying for taxes. Income tax,
sales tax, or use tax - those are only few of the
different kinds of taxes that you might encounter once
you start your online business.
The second thing you should consider is what specific
kind of online business you would want to start. Do
you want to sell clothes online? Do you want to sell
your painting online? Or maybe you would like to buy
and sell pre-owned items? Whatever kind of
online business you would like to have, make sure
that you coordinate it with the laws and regulations
of your state.
Your website should also have its own terms
and conditions. If the law in your state requires you
to make the customers pay for tax for the items that
they would like to purchase from you, don’t forget to
make your customers aware that they'll be paying an
additional tax for the items that they purchase
That way, your customers or clients will know that you're compliant
by how you handle the fees and income derived from your website.
Never Try To Dodge Your Tax Responsibility
The best way to ruin the future of your online
business is to try and avoid your responsibility as a
tax payer. When you start your online
business, consult a lawyer or your local
government town hall for assistance on legal matters.
No matter how small you think your online business may
be, there will always be a corresponding tax payment
for your online transactions.
Be sure that you are aware of the different states
that are offering tax-free sale transactions as well
as the states that have different tax collection
percentages. In issues that concern taxes and your
online business, ignorance is definitely not an excuse
so you might as well gear up and fill yourself with
adequate knowledge for your online business to
New changes in tax policy has recently required online businesses to remit taxes on transactions based on where the buyer resides and not where the business is located. Every state has different tax laws and requirements and it's difficult to stay up to date on all states you ship to. A CPA can help alleviate the stress of remitting the proper sales tax while you focus on being profitable.Hire one when you begin. Trust me, it's worth it...
...to be continued...