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Taxes - And Your Online Business - Do You Really Have To Pay?
from:By Deb St. George, on Online Business Taxes To Pay in your Tax Preparation Guide From BusinessNewsDirectory.net
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.
However, as they say, there’s no problem that cannot be solved. With just a few tips and guides, you can find out how to pay taxes for your online business
without any hassles or problems along the way.
The Charm Of Online Business
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.
Well, first of all, it is very hassle-free compared to having a business in the non-virtual world. You see, in online business, you only have to type and click
for your business to boom.
Very minimal manual labor is needed in an online business and one can even get to work at home in their pajamas while managing their online business.
Now the question is: are online businessmen or entrepreneurs exempted from paying taxes? The answer is no. All individuals who are earning money online are required to pay taxes.
Sure, the government can’t possibly keep track of how much money each person generates online but then again, it’s one of the citizens’ responsibilities to go ahead and be responsible enough to pay for their taxes.
The Real Deal About Most Online Businesses
The truth is, not everybody who does business online is honestly paying their due taxes. Most online businesses include shopping and it’s a known fact that most if not all shoppers despise paying sales tax and adore a bargain that is luxuriously tax-free.
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.
Sounds like a win-win situation, right? Online shoppers enjoy numerous tax-free shopping sprees and online retailers don’t pay their taxes. Most people probably think that doing business through the Internet is considered to be tax-free.
However, the fact is, some Internet sales are actually subject to what we know as "sales tax" and online consumers are the ones often responsible to remit any unpaid sales tax on whatever online products they have purchased.
They can actually remit it directly to their state come tax-paying time.
Collecting Sales Tax The process of determining whether you should pay taxes for your online business or not may be quite confusing and overwhelming - especially if it’s your first time to get involved in online business.
However, here are just some few tips you should remember: the obligation to pay the so-called "Sales Tax" can be determined by the location of the customers, and not the seller.
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.
State Income Tax News
Income tax cut clears state senate
OKLAHOMA CITY (AP) — A plan to slash Oklahoma’s top income tax rate has cleared a Senate panel, but opposition appears to be mounting among GOP members in the House. The bill to cut the top inco...
Read more...Governor, legislature agree on income tax cut
Gov. Mary Fallin and the Legislature have agreed on a nearly one-half of one percent cut in the personal income tax rate. The proposal is expected to cost the state $32.7 million in the upcoming fiscal year that begins July 1, and $102 million in fiscal year 2014 after the cut is implemented for an entire fiscal year. The plan also includes a one-time trigger for tax year 2015 to further ...
Read more...State offices reminded to withhold income tax
THE BUREAU of Internal Revenue (BIR) has issued guidelines for all government offices, reiterating their responsibility to withhold income tax, in a bid to improve compliance.
Read more...'Tax the rich' the opposite of reform
California is too dependent on the income tax. Brown's proposal would make the tax system even more of a bumpy ride. SACRAMENTO — Gov. Jerry Brown defends his soak-the-rich tax proposal as just. And besides, he says, it's popular with the non-rich.
Read more...Michigan House speaker: Accelerate 0.1 percent income tax cut
With $300 million in extra revenue, House Speaker Jase Bolger says the state can afford to move up a scheduled cut in the personal income tax to this year. "The state budget is much improved, and that's not our revenue," Bolger, R-Marshall, said in an int
Read more...'Tax the rich' is the opposite of reform
California is too dependent on the income tax. Brown's proposal would make the tax system even more of a bumpy ride. SACRAMENTO — Gov. Jerry Brown defends his soak-the-rich tax proposal as just. And besides, he says, it's popular with the non-rich.
Read more...Single 30% income tax rate urged
A single 30% rate of income tax is needed in order to boost growth in the UK, according to a report by a campaign group and business leaders.
Read more...