Your Questions About Doing Business Online Taxes

Sandra asks…

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.)

Jere answers:

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.

Steven asks…

How to calculate and pay BUSINESS tax online in India?

I need to know how its done step by step.

Jere answers:

If you want to Pay the Tax online the system will automatically calculate the Tax based on the Data you entered.The Tax rates are embedded in the System as Default.

David asks…

Online business? I have to pay taxes if working from another country?

I have an online business working from Argentina (South Amercia) to Australia and England offering a service of tech support online. I will like to offer this service in the USA as well. The people that will use the service have to pay by credit or debit card with paypal. I will like to know if have to pay taxes or not as I am not a resident of the US and if i have to have any business certification??. How can I do all this??.
Thank for your help!.

Jere answers:

Assuming that you are not a US citizen, there are no US taxes due as long as your service is provided from outside of the US.

Susan asks…

If I start a business online in Mexico that will sell to Latin America, what taxes do I have to pay?

I need to know everything about starting an online business in Latin America (including PPP, CAFTA, etc). What is the best way to ship the products? Any legal stuff to take care of?

Jere answers:

Where to start…

You will need a business license in Mexico, you will have to pay appropriate taxes for income and capital gains in Mexico, import and export taxes in Mexico, and possibly sales taxes.

You will may need to pay import and possibly sales taxes in the destination countries.

If you are in a third country, you will probably have to pay income taxes there.

Helen asks…

What taxes does an online business with one employee (the owner) have to pay?

Jere answers:

You report your business on Sch C and the sole proprietor is NOT an employee, when you report your income and business expenses on that form you arrive at a ‘net’ amount and that is your earnings on which you will pay your self employment tax, on Sch SE, approx. 13.3% of the net
this may or may not result in income tax but the se tax has to be paid

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