Your Questions About How To Do Business Taxes Online
Sharon asks…
Preparing and registering my online business for taxing?
hi everyone. i am confused on how where i should start. i am purchasing an online business on amazon.com. the seller ad i had an agreement. do i really have to register the business name and pay taxes??? or can i just report taxes every month with the help of a CPA?? all taxes will be included in every price because there is no way to tax the buyer after the purchase is made. please help. very confused and worried. cant sleep.
** please remember that my business is on amazon.com. i DON`T have my own website OR my own store.**. i know i have to file for federal and state tax. i will be reporting about 15% of the earnings as if i work for an employer.
Jere answers:
For sales tax, yes you must immediately register with your state and get a sales tax id, if you live in a state that has sales tax, and most do. You’ll only charge the sales tax to buyers in your state, not to everyone.
Income taxes and self-employment taxes are separate from sales tax. Not sure what you mean about “as if I work for an employer” – for this business, unless it’s a corporation, you don’t. You’re self employed, so need to pay around 14% self employment tax PLUS income tax to the feds, and whatever state and local income tax you owe – you need to pay all these with quarterly estimates.
Richard asks…
What Fees or taxes do i have to pay to start an online magazine business in Indiana?
How much does it cost????
THANKS!
Jere answers:
To start your on line magazine business anywhere in the USA does not require you to pay local fees or taxes. You will have to pay for Domain name, host and server before you can build a web site.
An all in one package is a good way to go. Do you know how to build a successful website? Do you have all the tools web design requires?
You will find a wealth of information regarding developing an on line business at the resource link below.
Thomas asks…
What are the legalities involving taxes and copyright/trademark/patents for an online business?
I recently decided to start my own online business once I had an idea for a website that could fill a huge untouched niche. I can’t talk much about what it is about yet, because I want to patent/trademark/copyright whatever I need to beforehand. I have two areas I need advise on:
1- My main source of revenue in the beginning would be website subscriptions. I need some advise on how tax works in this situation. I want to set it up as a business, so that I can expand it more later, but physically there wouldn’t be an office anywhere (at least at first), and I’ve heard that it is possible to get a lawyer or someone to help establish an online business in a state other than where I live in order to pay less for taxes. Is this legal, and how does it work? Is it advisable to do it if I really do want to have a physical office somewhere later on?
My other question is about legalities. Does anyone know if it is possible to patent a website configuration, rather than the software that uses it? I will be purchasing the software I need to run the website, but I want to make sure no one else can come in and copy me. Also, how does Trademark work for websites? Would I need to trademark my website name and company name separately, even if they are very similar? Lastly, How does copyright work on things published via website?
Thanks in advance for anyone who might be able to answer questions or direct me to find some answers.
Jere answers:
I can answer this question for you: “Also, how does Trademark work for websites? Would I need to trademark my website name and company name separately, even if they are very similar?”
To protect a business name within your industry, you would apply for a trademark.
Trademarks can be names of products or services, logos, slogans, packaging and even sounds and smells. In essence, a trademark can be almost anything that is used to identify a particular product or service. Registering a trademark grants the owner exclusive rights to the mark within the specified industry.
It’s necessary to have comprehensive research on the mark done prior to filing to ensure that there is no possibility of infringing upon another party.
This entails searches of the pending & registered Federal and State trademark files as well as the US National Common-Law files. Then, if clear, you can decide if you would like to file for a Federal or a State trademark.
To register a trademark, that’s done either through your Secretary of State for a State trademark or the US Patent & Trademark Office for a Federal trademark.
If you are only conducting business in one state, then a State trademark is most appropriate. If you conduct (OR are planning to conduct) business in at least 2 states OR between the US & any other country, you can file for a Federal trademark.
If the only difference between your web site name & company name is the .COM, then have just one name filed — however you display it. For instance, Amazon.com uses their mark with the .COM so they have Federal trademarks on the entire name. It doesn’t mean another party can file Amazon for retail sales of books as that’s still too similar to Amazon.com
Hope that helps! I wish you much success & happiness in all your ventures!
Michael asks…
How do I go about getting a retail tax license for an online retail business?
My husband is looking to start an online retail business selling ammo and shooting/hunting supplies (but not the firearms themselves). What kind of licenses do we need and how do we go about getting them?
Thanks
Jere answers:
Tax (retail) certificate (its not a license) is from the franchise tax board. Business license is from city government. Permit for ammno–that I do not know, sorry. Shipping ammo–ask at UPS or the post office what that would entail.
Lizzie asks…
Can I use a Fake Name For My Online Business? How do I send my Tax ID?
I use a fake name because I work online but a situation has come up where I need to put in my fist name, last name and tax ID. My name will be shown to the public though. Can I place my fake name and give my real Tax ID or is this fraud?
Jere answers:
I believe you need to apply for a trade name or fictitious name in order to do so. You can never be too safe when it comes to Tax ID numbers!
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