However, the happy days of transacting business without worrying about the taxes that come along with it will soon be over because on July 1, 2008, Washington will be joining 18 other states in America that oblige certain online or e-commerce businesses to pay and collect sale taxes.
Most people also believe that transacting small sidelines or business transactions through the Internet requires no tax. However, the truth of the matter is, there are actually taxes that are due for every item purchased or sold through the Internet.
Trying to start an online business is pretty much the same as starting any business in the world. Some people who are involved with online businesses usually use their ignorance as an excuse not to pay taxes.
Majority of the people who are involved with E-bay buying and selling would try to say that they don?t really have to pay tax from what they earn through the Internet because they are only treating it as a hobby.
However, agents from IRS would say that whether it is treated as a hobby or a sideline business, taxes should be strictly implemented.
You should also ask what is required at both state and federal levels. Most communities would actually require you to register a trade name. If you wish or choose to operate from your home, you should ask about the local zoning laws.
The government is strictly issuing penalties for businesses that fail to adhere to the law.
If you have your so-called online business, you should be aware of the rules of the IRS: one is required to pay taxes on all business and personal income and that includes the dough you make selling stuffs on the Internet.As heartbreaking as this may sound, even the simplest business transaction made through the Internet needs to be reported as "income".
If you want to have a successful online business, you should try to keep it as clean and honest as possible. Don?t even try to pull off any illegal or mischievous tricks in your business or it may jeopardize your success.
Make sure that you abide by the Truth in Advertising requirements; do not give customers misleading ads because they will only end up being disappointed or unsatisfied with your services which could lead to more trouble.
When You Make Money Online, You Have To Pay Taxes When you earn, you really have to pay taxes; it?s a known fact and perhaps what we can call a bittersweet reality. Sure, it may be a bit difficult on our part to surrender a part of our hard-earned money for tax dues but the truth is, everyone is doing so.
All income-generating businesses and stores are required to pay their due taxes. A law is a law and it must be followed at all costs. Some people who are involved in online businesses try to doge their tax-paying responsibilities. They think they are smart enough to be able to escape their tax-paying duties but the truth is, they?ll get into deeper trouble once the government finds out their dirty work. If you want to be successful in your carrer as an online businessman/woman, try to be as clean and honest as you can with your taxes and your online business. - 31821
Most people also believe that transacting small sidelines or business transactions through the Internet requires no tax. However, the truth of the matter is, there are actually taxes that are due for every item purchased or sold through the Internet.
Trying to start an online business is pretty much the same as starting any business in the world. Some people who are involved with online businesses usually use their ignorance as an excuse not to pay taxes.
Majority of the people who are involved with E-bay buying and selling would try to say that they don?t really have to pay tax from what they earn through the Internet because they are only treating it as a hobby.
However, agents from IRS would say that whether it is treated as a hobby or a sideline business, taxes should be strictly implemented.
You should also ask what is required at both state and federal levels. Most communities would actually require you to register a trade name. If you wish or choose to operate from your home, you should ask about the local zoning laws.
The government is strictly issuing penalties for businesses that fail to adhere to the law.
If you have your so-called online business, you should be aware of the rules of the IRS: one is required to pay taxes on all business and personal income and that includes the dough you make selling stuffs on the Internet.As heartbreaking as this may sound, even the simplest business transaction made through the Internet needs to be reported as "income".
If you want to have a successful online business, you should try to keep it as clean and honest as possible. Don?t even try to pull off any illegal or mischievous tricks in your business or it may jeopardize your success.
Make sure that you abide by the Truth in Advertising requirements; do not give customers misleading ads because they will only end up being disappointed or unsatisfied with your services which could lead to more trouble.
When You Make Money Online, You Have To Pay Taxes When you earn, you really have to pay taxes; it?s a known fact and perhaps what we can call a bittersweet reality. Sure, it may be a bit difficult on our part to surrender a part of our hard-earned money for tax dues but the truth is, everyone is doing so.
All income-generating businesses and stores are required to pay their due taxes. A law is a law and it must be followed at all costs. Some people who are involved in online businesses try to doge their tax-paying responsibilities. They think they are smart enough to be able to escape their tax-paying duties but the truth is, they?ll get into deeper trouble once the government finds out their dirty work. If you want to be successful in your carrer as an online businessman/woman, try to be as clean and honest as you can with your taxes and your online business. - 31821
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