ControlNode
Well-Known Member
- First Name
- John
- Joined
- Nov 29, 2021
- Threads
- 16
- Messages
- 1,711
- Reaction score
- 3,647
- Location
- Eastern NC
- Vehicle(s)
- 84 Civic "2000S"/16 Focus RS/21 Ranger XLT
- Occupation
- Computers
First, for a small business, I think it's a non-issue, but of course the companies providing the service will see it the other way, it's sales to them.You are next, you are 8th in the next batch, so, soon.
It would have been last night that I sent the message out, but the Shopify program is not functioning like I thought, I clicked the box 'collect taxes' oh no, it's not that easy.
The 2018 ruling about collecting taxes in all the states you sell in is a nightmare, it looks like it's going to be over 400$ a month for a service that does that, or I have to see if I have a nexus in that state and register with each state I sell in, with a zero to 45$ yearly fee, even if I only sell one in that state.
I talked to the Avalara rep yesterday, she said that ruling put them in business basically, I know I cant afford the service when you have to have a zoom meeting with a rep to discuss what my business needs are, she wouldn't even give me a ballpark price ?
Anybody here have a home business? how do you deal with it? just ignore it, will they audit me if I sell a dipstick in Florida or wherever without giving them the few bucks tax? Now I know why ebay is so popular, they handle all of that tax BS, maybe it's starting to look better, by the time I add up the Shopify fees and however I handle this tax thing, ebay is a deal at the 9% or whatever the current fees are.
So, to un-hijack this, I have a 9:00 meeting, after that I hope to send out the next group message.
Looking at the Nexus map You could also go the route of not bothering, but also capping annual sales, (dollar amount) or (number of), under the thresholds in states where that would be an issue. So as long as you're not physically in those states or have one of the other Nexus connections (affiliated partner, or such) in the state it's not on you. Using my home state of NC as the example, if you don't have 200+ sales or sales >= $100,000 it doesn't look needed. Again, by having users create accounts and having the address on file you could not present them with the option to buy when their region is at its cap and state they should be available again at the start of the new year (or fiscal year depending on how that state does it). If you project that in a given state you are likely to reach/exceed that number, you could also create the account for that state and collect taxes there. The only possible problem there is if you then have to pay taxes on the sales prior to the threshold being reached and that varies state to state. It may be a good idea that if you project reaching those numbers you pad the prices there for the expected sales taxes so you can cover it without being out of pocket. You may find you only need to file with a few states, and it could be way cheaper than those "all inclusive" service plans for all states.
Also, in North Carolina the buyer is responsible for the "Use Tax". If I go to VA to buy a computer or such and even pay the VA taxes on it, if I bring it back home in NC to use it, I have to pay taxes based on the purchase price. Same of any online purchases that I didn't get charged NC state taxes. It gets declared on my annual taxes. I also can deduct whatever I paid in taxes out of state on my form to offset that tax or even 0 it out. I don't know if NC pursues that money from that other state or not.
And lastly, I'm not a financial advisor and didn't stay at a Holiday Inn Express last night, so find the option you are most comfortable with and discuss it with your advisor.
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