Why Do You Need To Pay Taxes
Oct 30, 2009 Online Tax
If you are a neophyte in realm of online business, then perhaps you have a lot of questions that are plaguing your mind and one of them may be all about whether you are obliged to pay taxes for your online business or not.
Calculating and paying your duly taxes alone is already one confusing ride, and surely it will get more confusing if it will be mixed with an online business.
Taxes and your online business (if you have one or planning to have one) should work hand in hand for you not to get in trouble with the government.
Before we talk about taxes and your online business, let’s discuss first why more and more people are getting attracted to starting their own online business.
So whether you are working at home, in a store or in a warehouse, you are still obliged to pay for whatever tax is due to you.
While you may think that doing business on eBay is just something you may consider as a fun pastime, the money that you made, are making or will make is actually still valid to reported as income.
You need to consult with the IRS people first before you can truly say that you are exempted from paying taxes while you are participating in your online business.
You see, everyone seems to love making money but when the time comes that they have to pay their due taxes to their beloved country, they try almost every possible way to escape paying their taxes.
The Internet is actually considered to be a great venue for tax-free shopping which lures more and more customers each day. Online retailers have been using a no-tax shopping tag line to attract more online shoppers to their business.
In addition to that, you are also obliged to pay your portion of social security and medicare taxes using schedule SE.
Realistically speaking, if you don’t treat eBay as a serious and constant venue for your online business, then perhaps you can get away with selling a few items every now and then without having to worry about the IRS tracking you down with their questions about tax dues and other stuffs.
However, if you are a consistent chap at eBay, then the IRS people might categorize your eBay participation as something that is business oriented and you may end up being required to file a Schedule C form and claim the income that you have spurred.
If a business does not actually have a physical presence in a particular state (an example of this would be your online store or business), it is not required to collect sales tax from costumers in that certain state.
Thank you for reading my article on Taxes for your online business, please take the time to read my articles on lender loans and mutual mortgage as well!
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