I know a lot of people are selling on Amazon, and hoping someone can shed some light on how sales tax works...
I'm setting up my Amazon Sellers account and there's nothing in the Amazon help docs that explains how sellers should charge sales tax except for some pretty vague language. The Sellers discussion forum is also full of confusion.
My limited understanding of the tax law is that, depending on the state, if you're items are warehoused and shipped to an individual in that state, your business has nexus in that state - and therefore are subject to paying sales tax. There are also states like California that have the Amazon Tax.
So that means I need a state registration number, pertinent retailer licenses and pay sales taxes in the state my business is located, plus:
Now because I am warehousing and shipping my wares in these states, the state may determine that I am considered as doing business in these states. This depends on the various laws for each state, but could require that I am incorporated in that state, have all the appropriate businesses licenses, and pay corporate business tax as a foreign entity.
So now all the tax prep and bookkeeping complications has made Amazon FBA not looks so attractive.
I just sent my stuff to the Amazon warehouses, but starting to think I don't want to sell a single item through their fulfillment centers.
Do I have this all wrong?
Edit: Also need to consider county, city taxes and/or regulations that may be imposed.
I'm setting up my Amazon Sellers account and there's nothing in the Amazon help docs that explains how sellers should charge sales tax except for some pretty vague language. The Sellers discussion forum is also full of confusion.
My limited understanding of the tax law is that, depending on the state, if you're items are warehoused and shipped to an individual in that state, your business has nexus in that state - and therefore are subject to paying sales tax. There are also states like California that have the Amazon Tax.
So that means I need a state registration number, pertinent retailer licenses and pay sales taxes in the state my business is located, plus:
- Arizona
- California
- Kansas
- Kentucky
- New York
- North Dakota
- Pennsylvania
- Texas
- Washington
- Indiana
- Delaware
- Nevada
- New Hampshire
- South Carolina
- Tennessee
- Virginia
Now because I am warehousing and shipping my wares in these states, the state may determine that I am considered as doing business in these states. This depends on the various laws for each state, but could require that I am incorporated in that state, have all the appropriate businesses licenses, and pay corporate business tax as a foreign entity.
So now all the tax prep and bookkeeping complications has made Amazon FBA not looks so attractive.
I just sent my stuff to the Amazon warehouses, but starting to think I don't want to sell a single item through their fulfillment centers.
Do I have this all wrong?
Edit: Also need to consider county, city taxes and/or regulations that may be imposed.
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Membership Required: Upgrade to Expose Nearly 1,000,000 Posts
Ready to Unleash the Millionaire Entrepreneur in You?
Become a member of the Fastlane Forum, the private community founded by best-selling author and multi-millionaire entrepreneur MJ DeMarco. Since 2007, MJ DeMarco has poured his heart and soul into the Fastlane Forum, helping entrepreneurs reclaim their time, win their financial freedom, and live their best life.
With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.
Become a member and gain immediate access to...
- Active Community: Ever join a community only to find it DEAD? Not at Fastlane! As you can see from our home page, life-changing content is posted dozens of times daily.
- Exclusive Insights: Direct access to MJ DeMarco’s daily contributions and wisdom.
- Powerful Networking Opportunities: Connect with a diverse group of successful entrepreneurs who can offer mentorship, collaboration, and opportunities.
- Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.
"You are the average of the five people you surround yourself with the most..."
Who are you surrounding yourself with? Surround yourself with millionaire success. Join Fastlane today!
Join Today
