Sales Tax Questions/Biz Licenses

**newmember** · 03-17-2008 09:20 PM

I am thinking about Drop Shipping some to start off.. If a buyer buys from me from a different state than me but the Wholesaler (whom I dropshipped for) is in that state, is there sales tax?

I haven't started a business yet.. What all do you need to start (in terns of licenses and so on) and how long does it take?

**frd393** · 03-17-2008 09:51 PM

Yes I am also interested in the answer to this question.

I want to know what licenses are needed to be considered a real business in order to purchase from the wholesaler. Also I plan on doing it through an online store, will that make a difference?

**frd393** · 03-18-2008 01:06 PM

bump bbbbbb

**Jerimiah** · 03-18-2008 02:59 PM

First off, consult legal and tax professionals for advice like this. Most of them are more than willing to offer you a free hour or half-hour of their time to get you started.. just don't forget the folks that helped you get started.

I use a fantastic CPA, his name is Bambo Sonaike his website is cpa-service.com.

I wish you much success in your venture!

I sell services, so I really don't have any advice to give, else I surely would

**pboychuk** · 03-18-2008 04:57 PM

Well, thats a good question because the items are being shipped from a dif. state, just do some reseach. When you drop ship do you actually consider the profit and sale of the item? or just a percentage of the sale as if you were a sales agent. As far as licensing, my first businesses were registered as sole proprietorships w/ the county, not I have formed an LLC, I can tell you this much, if you dont have much of a liability risk, stick with an SP until you grow larger, b/c the taxes are much more confusing for an LLC.