Online Retail Business Taxes?

**bobafett573** · 11-24-2008 01:16 PM

Hi I'm currently in the process of starting an online retail business targeted at selling popular technology items to students at a local university. I will not have a physical store, as the items will be delivered directly to the student's housing. However as I look for information about taxes, there doesn't seem to be much information about taxation for online businesses. Since I'm selling stuff, I will need to charge sales tax. That makes me think I need to register the business as if it were an actual store. I'm just really confused about what forms and certificates I need to get to operate an online retail business. Any help would be appreciated. I'm located in Indiana if that helps at all.

**Diezel** · 11-24-2008 06:16 PM

Hello,

You DO need to register as if you were an actual brick and mortar store. When you sell items in the state you are located in you have to pay the sales tax on the items. The state sets the sales tax you charge that %. If you do not do this you will have the IRS at your door taking you to jail. The form that I file in Illinois is an ST-1 form that I file online every month. It is free to register a business and you also get a Sales Tax ID number that you can use to apply for wholesalers. Hope this helps, and remember always do things legally you definitely don't to be sitting in jail.

**kimbeckers** · 11-24-2008 06:22 PM

You should register your business in your state as the benefits more then likely out way the costs. It should be under $200 to do so and will allow you to take many tax write offs as well as protect you as a business. Here is a link for a free e-book for starting a business by the book. Start A Small Business | Kim Beckers Services

You should however contact an accountant or tax attorney for advice for your state and circumstances.

Kim

**Diezel** · 11-24-2008 06:27 PM

If you live in Illinois it is free to register a business, at least in was for me! But Kim is 100% correct the benefits out way the costs.

**jr429** · 12-09-2008 02:48 PM

You only have to pay sales tax to anything you ship in-state as interstate commerce is not taxable. Make sure you get the county rates correct. Good luck!