How and when to compute tax

Hello everyone,

I found a wholesaler that I want to use and I need help with the tax.
If you sell on eBay how does the tax situation work?
Do only certain states need it? BTW I live in IL

If I decide not to sell on eBay and sell on my own website in like bulk lots, do I need tax then?

Finally if I do need tax how do I give it to the government?

THANKS!!!!!!!

Hello everyone,

I found a wholesaler that I want to use and I need help with the tax.
If you sell on eBay how does the tax situation work?
Do only certain states need it? BTW I live in IL

If I decide not to sell on ebay and sell on my own website in like bulk lots, do I need tax then?

Finally if I do need tax how doI give it to the government?

THANKS!!!!!!!

Most states do not have sales tax for internet sales unless the item is shipped within your state. If I am correct, you are not responsible to collect sales tax for any other state then your own when shipped within the state.

As an aside, some of the big companies which have brick and mortar stores, get away with not collecting sales tax by setting up a completely different corporation for online sales and therefore have no in state presence.

Okay thanks!
Also how would I collect tax for my state?
Would I need to file a tax return also?

Just an update on this...I was told by the state that it does not matter if you collect sales tax from your state or not if your making an income with online sales you are still required to claim your income to the IRS regardless. If your making either a profit or coming in even your still required to file this on your taxes. I actually did my taxes already and had to pay a few hundred bucks to the IRS.

Please do not avoid this because they will research this if you don't.

Okay still a little confused...

Just to clear everything up. I live in IL and if I sold to someone in NY I wouldnt need to collect sales tax. However I still need to report my earnings and have tax on my profits.

Correct right?

That is Correct iamdog, for example I live in Virginia and part of this state law you are liable to collect only sales tax with sales made in the state. Federal laws still require regardless to file any income earned from Internet sales. You will need to know your Gross Sales for the year I believe.

If you really want to invest for long term and make sure your all in order I would invest in Quickbooks Pro 2010. Basically it does the work for you and keeps you organized so you dont get hit with surprises.

Okay THANK YOU very much!!!