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    4 Replies Latest reply on Aug 18, 2009 12:45 PM by bm911tax

    Online business Tax Reporting Question

    jcooper12 Wayfarer
      I have a two questions. I plan to have an online business selling silk flowers from my own home which I am currently renting.

      1) If I am running an online business out of my home in florida and someone in ohio orders one of my products, I understand that they do not have to pay tax because it is another state and I would have an online business. However, off of that sale do I have to report tax from the sale to the state anyways or is no tax reported since they did not have to pay tax?

      2) I am new to business. I understand that sales tax that is collected must be reported to the state, but is there any other kind of tax that I will have to pay. I know business owners do not like tax time this is why I ask. It seems that there is probably more than just the tax off the items you sell, something that I do not know about. Is there any other kind of tax that I will have to pay other than the tax collected on the items that I sell at the end of the year or quarterly?

      Jason Cooper
        • Re: Online business Tax Reporting Question
          LUCKIEST Guide
          Online business Tax Reporting

          Jason, Everybody ib business should have both an Accountant and a Lawyer.

          I suggest you contact a Florida Accountant and ask him.

          Good luck, LUCKIEST
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          • Re: Online business Tax Reporting Question
            bm911tax Adventurer

            In general Sales tax is collected from customers if you have a physical location in the same state as the customer. So if you have online business in FL and you sell something online to the resident of FL, you must collect sales tax, but if you sell something to NJ resident then you do not need to collect sales tax.


            You need to be registered with the state to collect sales tax and submit the money with a monthly or quarterly sales tax return to the state.


            Besides sales tax there is also income tax. It's based on your business profit. If you are netting with a profit, you do have to pay estimated taxes every 3 months and send it to the IRS or the State if required. I strongly suggest you find qualified tax advisor/accountant, it will cost you more money in penalties and fines if you do this yourself.


            Best of luck



              • Re: Online business Tax Reporting Question
                jcooper12 Wayfarer
                Thank you for the information. This answers my question. When you say hire an accountant, do you mean for when it is time to get my income tax done that I have an accountant do it for me or do you mean have a full time accountant for my business? I only plan to make about 400 dollars a month in profit. I am keeping my full time job. This business is just to bring in a few extra dollars because I know with an online business this is possible. I also am not dealing with any receivables or payables, only cash. I don't need any loans; I have the funds to start it. it will cost around 1250 dollars to start. There will be no employees. there will be no inventory; whenever someone orders a item from our site, we in turn order the product from a wholesaler online and then ship it to them. It doesn't seem like a full time accountant would be necessary.