What online sellers need to know about taxes

What Online Sellers Need to Know About Taxes
In this video, we'll discuss:
• Why ensuring you're tax-compliant is a crucial part of selling online
• Basic tax considerations all online sellers should be aware of
• The concept of sales tax nexus and how it impacts online sellers

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Hi, everyone! I'm Emily, I've got Darlene

here with me today,

and we're going to talk about taxes.

(upbeat techno music)

I know, I know it's about as interesting a topic

as insurance premiums or hearing about

your friend's juice cleanse, but seriously,

if you're going to be selling stuff online,

you need some sales tax sense.

And that being said, we are not tax professionals.

We're not.

And we are not here to offer you tax advice.

We know tech, not taxes.

Yeah, it's a whole 'nother realm of nerdery right there.

This video is just meant to give some sales tax tips

to new online sellers.

Understand that this is some serious stuff.

Tax is a complicated thing and

a general pain in the butt, and sales tax is no different.

Yeah, and if you think that just because

you're an online-only business or a small business,

that these tax laws don't apply to you,

that's a huge mistake.

Tax authorities take this stuff very, very seriously.

Failing to collect sales tax exposes you

and your business to a bunch of terrible things,

like payment penalties, interest, collection fees,

and all this happens after you pay

what you already owed.

Which is why we strongly advise that you do

whatever it takes to make sure

that your online store is sales-tax compliant.

Do your homework. Do some research online.

And make sure to balance out that research

with some advice from a real tax professional.

Sales tax is complicated, but it's not impossible,

especially when you have a little help from a tax pro.

And there is no grace period when it comes to sales tax,

so even for your teeny tiny online store, you need

to make sure that you're tax compliant

from the get-go. So take some time up front

to make sure you know what your business is

on the hook for, and get started off right.

And now that brings us to the fancy tax term

of the day, which is Nexus.

What is Nexus? A car?

No, Darlene, it's not. Nice try.

Nexus with an "n" essentially describes the relationship

that triggers sales-tax collection within a state.

So, the relationship between the seller

and then the state in which they're selling it,

if that makes sense.

Yeah, I mean, stores used to be a physical presence

and a location in a state, so you'd be obligated

to pay that state's tax, but now we're talking online.

Right, yeah, online now, all these states

are saying, "Hey, we want to be able to charge tax

on things that may not be sold in our state,

but people in our state are buying them.

So you're going to want to document

every touchpoint that your business has

with another state. And then use some online tools

to your advantage to check what the rules are

state by state, so you can make sure you fulfill

your Nexus obligation.

And once again, we are not tax professionals,

so probably another good time to reach out

to the local pro in your area and get some more advice.

It's not uncommon for small businesses

to inadvertently spend their sales tax dollars

along with other company funds,

so setting them aside in a separate bank account

is a good idea.

And this should be a no-brainer,

but probably a good idea to set some

reminders for yourself. Deadlines, due dates,

they vary state by state, so set up some reminders

on your calendar, so that you don't file late

or incur any kind of penalties.

I'm Emily.

I'm Darlene.

Thanks for joining us.

#howto #build #website #godaddy #onlinestore #webstore #websitebuilder

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