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#3
05-14-2004, 06:48 AM
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 Re: California sales tax and internet businesses nmack[at]pacbell.net (angusm) wrote: - quote - > I'm a resident Californian contemplating starting an
No. When you move your business out of CA, you must> internet retail business, probably an S-corp but not > certain. To get much of the information for this business to > see if I can make money doing it I need to get a resale > license (partly for credibility reasons dealing with vendors > to get pricing info). Because of tax issues I may be doing > many of the things of running a business (eg businesses > taxes) before I know if I have a viable idea. > Because I would be competing with internet companies that > don't collect CA sales tax and CA is one of the largest > markets I may need to relocate out of CA to be able to make > a go of it. > Will I be painting myself in a corner by going through the > motions of starting in CA (registering for the sales tax id > in CA etc) only to discover if I relocate out of state that > CA knows everything about my business and will require me to > collect CA sales tax? surrender your CA seller's permit to the State Board of Equalization for cancellation. Here is a link to an SBE publication explaining the closeout of a seller's permit: http://www.boe.ca.gov/pdf/pub74.pdf - quote - > I know having a physical presence in CA requires you to
No.> collect sales tax in CA. Does this still apply across time > ie if you once had a presence in CA then you always have it? BUT you will NOT be able to close out your seller's permit or stop collecting tax on sales shipped to California customers if you leave any part of your business, including any inventory, in California. You must get EVERYTHING out and do NOTHING but solicit sales from outside California and ship the merchandise from outside California. - quote - > Alternatively, could I start a business in CA and then just
More trouble than it would be worth.> restart again under a different name and tax id or am I > letting myself in for some hidden liabilities. But this > route seems a hassle for me anyway. Katie in San Diego The foregoing is intended for educational purposes only and does not constitute legal or professional advice. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
05-14-2004, 02:07 AM
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| Re: California sales tax and internet businesses nmack[at]pacbell.net (angusm) wrote: - quote - > I'm a resident Californian contemplating starting an
No. When you close your business in California, you will> internet retail business, probably an S-corp but not > certain. To get much of the information for this business to > see if I can make money doing it I need to get a resale > license (partly for credibility reasons dealing with vendors > to get pricing info). Because of tax issues I may be doing > many of the things of running a business (eg businesses > taxes) before I know if I have a viable idea. > Because I would be competing with internet companies that > don't collect CA sales tax and CA is one of the largest > markets I may need to relocate out of CA to be able to make > a go of it. > Will I be painting myself in a corner by going through the > motions of starting in CA (registering for the sales tax id > in CA etc) only to discover if I relocate out of state that > CA knows everything about my business and will require me to > collect CA sales tax? > I know having a physical presence in CA requires you to > collect sales tax in CA. Does this still apply across time > ie if you once had a presence in CA then you always have it? surrender your California seller's permit and file BOE Form 65. Read State Board of Equalization Publication 74. - quote - > Alternatively, could I start a business in CA and then just
Not necessary. Just turn in your seller's permit when you> restart again under a different name and tax id or am I > letting myself in for some hidden liabilities. But this > route seems a hassle for me anyway. are no longer going to carry on your business in California. If you operate your business somewhere else, and ship tangible personal property to California customers from inventory located outside California, you will not be required to collect California sales or use tax from your customers. Katie in San Diego The foregoing is intended for educational purposes only and does not constitute legal or professional advice. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
05-14-2004, 01:48 AM
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| Re: California sales tax and internet businesses nmack[at]pacbell.net (angusm) wrote: - quote - > I'm a resident Californian contemplating starting an
When you discontinue your business in California, you would> internet retail business, probably an S-corp but not > certain. To get much of the information for this business to > see if I can make money doing it I need to get a resale > license (partly for credibility reasons dealing with vendors > to get pricing info). Because of tax issues I may be doing > many of the things of running a business (eg businesses > taxes) before I know if I have a viable idea. > Because I would be competing with internet companies that > don't collect CA sales tax and CA is one of the largest > markets I may need to relocate out of CA to be able to make > a go of it. > Will I be painting myself in a corner by going through the > motions of starting in CA (registering for the sales tax id > in CA etc) only to discover if I relocate out of state that > CA knows everything about my business and will require me to > collect CA sales tax? surrender your California seller's permit and file form BOE-65. - quote - > I know having a physical presence in CA requires you to
No.> collect sales tax in CA. Does this still apply across time > ie if you once had a presence in CA then you always have it? - quote - > Alternatively, could I start a business in CA and then just
Not a good idea. Just cancel your California seller's> restart again under a different name and tax id or am I > letting myself in for some hidden liabilities. But this > route seems a hassle for me anyway. permit, and register as a seller with the state where you continue your business. Katie in San Diego The foregoing is intended for educational purposes only and does not constitute legal or professional advice. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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05-14-2004, 01:10 AM
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| Re: California sales tax and internet businesses angusm wrote: - quote - > I'm a resident Californian contemplating starting an
To avoid CA, and I would like to, you must not live there> internet retail business, probably an S-corp but not > certain. To get much of the information for this business to > see if I can make money doing it I need to get a resale > license (partly for credibility reasons dealing with vendors > to get pricing info). Because of tax issues I may be doing > many of the things of running a business (eg businesses > taxes) before I know if I have a viable idea. > Because I would be competing with internet companies that > don't collect CA sales tax and CA is one of the largest > markets I may need to relocate out of CA to be able to make > a go of it. > Will I be painting myself in a corner by going through the > motions of starting in CA (registering for the sales tax id > in CA etc) only to discover if I relocate out of state that > CA knows everything about my business and will require me to > collect CA sales tax? > I know having a physical presence in CA requires you to > collect sales tax in CA. Does this still apply across time > ie if you once had a presence in CA then you always have it? > Alternatively, could I start a business in CA and then just > restart again under a different name and tax id or am I > letting myself in for some hidden liabilities. But this > route seems a hassle for me anyway. > ================================================== ========== > Moderator: > Because you correctly spelled "Kal-E-Forn-Ya", the State > expects you to pay them taxes.  )))> ================================================== ========== and sever all ties to CA. -- Frederick E. Jorden http://Tax-Accounting-Payroll.com 7825 Midlothian Tpk - 207 Richmond, VA 23235-5247 EMAIL knowtax[at]bigfoot.com (804) 320-6210 FAX (804) 320-6211 << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
05-12-2004, 03:41 AM
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| California sales tax and internet businesses I'm a resident Californian contemplating starting an internet retail business, probably an S-corp but not certain. To get much of the information for this business to see if I can make money doing it I need to get a resale license (partly for credibility reasons dealing with vendors to get pricing info). Because of tax issues I may be doing many of the things of running a business (eg businesses taxes) before I know if I have a viable idea. Because I would be competing with internet companies that don't collect CA sales tax and CA is one of the largest markets I may need to relocate out of CA to be able to make a go of it. Will I be painting myself in a corner by going through the motions of starting in CA (registering for the sales tax id in CA etc) only to discover if I relocate out of state that CA knows everything about my business and will require me to collect CA sales tax? I know having a physical presence in CA requires you to collect sales tax in CA. Does this still apply across time ie if you once had a presence in CA then you always have it? Alternatively, could I start a business in CA and then just restart again under a different name and tax id or am I letting myself in for some hidden liabilities. But this route seems a hassle for me anyway. Thanks. ================================================== ========== Moderator: Because you correctly spelled "Kal-E-Forn-Ya", the State expects you to pay them taxes. )))================================================== ========== << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| businesses, california, internet, sales, tax |
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