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Online Taxes: What should small bus do?
My wife and I have a small online business. Both our website and other unrelated sites sell a few of our products. Problem: We are not sure how we are affected by online taxes and any tax obligations. Do we have to charge customers taxes? Is it cheaper to use one of our foreign businesses to do sales, in an effort to keep costs down for our customers.
If we have to charge taxes, it makes it virtually impossible to compete with the larger billion dollar companies that can undercut us because of their size and ability to undercut us. How can our leaders expect small businesses to grow if we are held to higher standards than billion dollar entities. It would make sense for an income based tax so that firms generating under $100,000 would be charged a significantly lower tax than firms generating $100,000,000, etc.)
2 Answers
- Anonymous1 decade agoFavorite Answer
Charge for and pay the sales taxes in the states where you actually have a bricks-and-mortar presence. You don't have to anywhere else.
Move your physical business to Delaware, New Hampshire, or Oregon where there are no sales taxes - or move it to where you have the fewest customers so your sales are not hurt by charging sales tax.
Join lobbying groups to fight sales tax purchases on any online transactions. The government already robs and wastes enough of our money.
This should be an issue in the Presidential campaign and Yahoo and other big internet companies should be fighting against taxes on web purchases. It hurts the consumer - the little guy who uses the internet to save a buck here and there.
- Bostonian In MOLv 71 decade ago
If you sell goods for delivery in your State, you MUST collect and render sales taxes on all of those sales. Using a foreign "shell" company to complete the sale doesn't get you off the hook for State sales taxes since YOU and the CUSTOMER are in the same state.
Small businesses compete with big businesses VERY effectively. Although a large business may be better able to compete on price, small businesses -- at least the ones that expect to survive -- can offer a level of personal service and attention that large businesses can't. THAT is how you beat big businesses at their own game.
