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Startup with no physical location, question about taxes

posted by: QuestionaireGuy on 2017-01-15
tagged: taxes, llc, texas
score: 1

If a startup online store company has absolutely no physical location anywhere in the United States I have read that they aren’t required to charge sales tax in any place they do not have a physical presence.

My question is, in the past I had another online store and every month we paid taxes in the state of Texas.

If we don’t charge taxes and we sell lets suppose 100 dollars worth of merch.

When it comes time to report taxes do I still report that I sold 100 dollars? If I do then I have to pay the state.

I’m just confused on how this taxes thing works if I have no physical location anywhere in the United states.

I am in Texas.

In the past I was required to pay monthly and if I didn’t pay or was late i was charged 50 dollars as a penalty.

Thanks,

Answer 11919

posted by: Denis de Bernardy on 2017-01-15
score: 1

I have read that they aren’t required to charge sales tax in any place they do not have a physical presence.

This is wrong because the premise itself is wrong. There’s no such thing as a company without a physical presence anywhere.

I am in Texas.

Then you must register a company in Texas. It’s really as simple as that. Even if you incorporate in another State for whatever reasons (typically wrong ones), you still need to register the business - and declare taxes etc. - locally, in the State you live in.