# Tax Question for Online Store



## GMWApparel (Jun 25, 2011)

Hey everyone!

I had a quick question regarding sales tax when selling online. 

If I have read and interpreted what I have from talking to people if I'm in Indiana I pay sales tax on everything sold to people in Indiana but say I sell a shirt to someone in Tennessee I don't pay sales tax there unless I have a physical presence there correct?

Maybe that's wrong? Right now I have it set to charge each state what their sales tax is if that is where the shipping address is. But I feel like I shouldn't be charging that if it's not needed.

Thanks


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## greyhorsewoman (Jul 19, 2007)

You are correct, you do not need to charge sale tax for out of state sales unless you have a physical presence there. Also, you CANNOT collect sales tax unless you possess a valid sales tax license in that state.

Most folks who buy online know they shouldn't be charged sales tax for out of state sales, so I'd remove that, as it could effect your sales.


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## connorfor2 (May 3, 2011)

GMW, if you don't mind me asking, how is business going? I've been following your posts on here and am curious.


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## GMWApparel (Jun 25, 2011)

GHW - Thanks for the information! Yes I will have to fix that. 

Connor - Sales are doing great. We have been opened for 1 week and just started to scratch the surface I believe. Our biggest sales now are through Christian/Catholic Store fronts but have had great feedback from the average consumer online.

Also we are starting to get into contact with some high profile athletes. 

We have been getting mass amounts of requests for the God Is My Wingman wristbands. Kind of like WWJD back a little while ago. So those will be available in probably a week. Currently in production. 

Thanks for asking!


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## michealtorn (Jun 30, 2011)

GMWApparel said:


> GHW - Thanks for the information! Yes I will have to fix that.
> 
> Connor - Sales are doing great. We have been opened for 1 week and just started to scratch the surface I believe. Our biggest sales now are through Christian/Catholic Store fronts but have had great feedback from the average consumer online.
> 
> ...



Hi GMW

You site nice and i think your should also consider an e commerce solution for this once you make some bucks from this site.


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## connorfor2 (May 3, 2011)

That's exciting. Congratulations.

I'm months away from launching but I have an idea for a line of shirts and my target market would be Christian guys, high school and college aged.

While we're obviously in the same or similar markets, I don't really see us as being competition. Leading up to my launch I will be starting a blog and would love to feature your shirts in a post.

I'll be in touch in the future and good luck.


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## GMWApparel (Jun 25, 2011)

michealtorn said:


> Hi GMW
> 
> You site nice and i think your should also consider an e commerce solution for this once you make some bucks from this site.


Yeah that is definitely something we will be looking into. I don't know to much about it. Thanks for the nice words about the site too! 

I'm more of a business minded guy so selling and stuff is my thing. I have been trying to learn as I go along with my partner when it comes to e commerce.


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## GMWApparel (Jun 25, 2011)

connorfor2 said:


> That's exciting. Congratulations.
> 
> I'm months away from launching but I have an idea for a line of shirts and my target market would be Christian guys, high school and college aged.
> 
> ...


Yeah honestly we came up with the phrase we have and our logo and just said wow we would love to see that on shirts. We researched the market and I don't see you or anyone really being to much competition. If you research the market there is potential to do great things. 

Like me and my partner said. We just want a piece of the pie. lol 

Yeah we would be honored to have you feature our shirts in your blog. 

Yeah keep in touch and good luck to you! Let me know when you launch your blog and site. Will def. check it out


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## michealtorn (Jun 30, 2011)

Sure matey
have fun and i ll be in touch soon


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## Jmanindie93 (Apr 12, 2011)

It's so nice to see posts like these. Gives me more hope.


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## GMWApparel (Jun 25, 2011)

Jmanindie93 said:


> It's so nice to see posts like these. Gives me more hope.


Yeah always good! 

You sell shirts online? Would love to check them out


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## dptk (Aug 14, 2009)

Actually there was a bit of bad advise here, if you collect tax for a state you MUST submit that collected tax to the state it was collected for (regardless if you have tax id for that state)

You are only required to collect sales delivering to state that you have 'nexus' , so there is no reason to collect sales tax in any other state.


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## Jmanindie93 (Apr 12, 2011)

I am working on getting some designs together and starting a site up. I just am confused about taxes. I don't pay them right now, live with parents. So do I have to make a certain amount online to have to pay them?


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## chrisgayle (Jul 19, 2011)

Consumers who live in a state that collects sales tax are technically required to pay the tax to the state even when an Internet retailer doesn't collect it. When consumers are required to pay tax directly to the state, it is referred to as "use" tax rather than sales tax.


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