What are the sales tax laws on an online business?
My business would not ship any actual product. It is a service business. People would purchase a membership and have access to my services. So, what are the sales tax laws for that type of online business?
Tue Apr 27, 2010 9:23 pm
ed2009 Preferred Member
Cash: $ 27.70
Joined: 02 Dec 2009
Each State is different. In CA , the sales tax is 9.75% which is the highest in the nation because the State is broke and they are taking it on everybody.
Joined: 26 Sep 2010
Location: Huntington Beach, CA
I would check with a licensed tax professional. The state of California is pretty aggressive when it comes to taxing online businesses. At our office in Los Angeles we have to pay taxes on revenue even though we are an online business and do not do any business in the state. This state is very unfriendly to businesses!