Sales tax for the buyer

I am trying to find out how sales tax work when selling the products we have within the state I live in as well as across state lines. If anyone can give me some insight that would be greatly appreciate. I already called my controller and was told that we don’t qualify fir the tax exemption for sales tax, however I’m just trying to get more Information from people/businesses that are already doing it. We haven’t become sellers yet but looking towards the idea because we have animals available to sell.

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Check each state you vend in to see if they require you to get a temporary tax privilege or sellers permit for that state. Make sure you charge the correct tax rate for the state/county/city you’re vending in. You may also need a local business license. There is no one rule to follow. I’m a contractor, you wouldn’t believe how many city business licenses I have :expressionless:

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Virginia here. I pay sales tax quarterly. Everything is done through the State’s online portal and it is typically due around the 20th of the month after the quarter. So for example, I am getting ready to pay 3rd quarter (July, August, September) taxes and it is due October 20.

In order to collect sales tax, you have to have a business entity. I have an LLC but it can be other things - sole proprietor, S-Corp, etc. I was able to apply for permission to collect sales tax using the EIN that I got from the IRS when I started my company. The laws for every state are going to be different. In Virginia, you will start on monthly payment schedule. If your sales are below a certain threshold (not sure what that is) they will bump you down to quarterly.

Since this is my side business and not my main gig, there are several things that I don’t have to do (like local business license) simply because I don’t have high enough gross sales to qualify.

Best advice I can give you here is to hire an advisor/accountant with small business experience. I had a million questions that came up once I started to become profitable and I didn’t know how to interpret a lot of the tax laws and rules. Probably cost you under $500 a year and is well worth the money.

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I appreciate your reply. The state I live in is Texas. I just want to get all the info up front and the websites are not always as helpful as we would like or dumbed down enough to under If your not in that line of work lol.

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I just don’t want to get into a fight with irs on taxes. Since we aren’t a business just currently a hobbyist since not out main job either, idk what all is required. It would be sole proprietor because we aren’t currently working under and LLc.

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Even as a sole proprietor you’ll still have to register your business entity with the state.

Take a look at this thread I give a brief description of the process.

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In Ontario Canada you are considered a small supplier if your sales are under $30,000 for the past 4 quarters and it is not neccessary to make a sales tax account with the province.

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how many of you guys charge sales tax for online sales, like thru MorphMarket or website? With all the weird new laws i don’t want to have the irs to audit me