Taxes: Do You Have to Pay when You Blogging?
One of the confusing thing for new blogger is do they have to pay taxes even if they make a little money only. While I am not a tax expert, I know thing or two from owning a business and having my own financial person to help me with taxes. See also: What Do You Need To Know About Blog Business taxes?
If you are a neophyte in realm of online business, then perhaps you have a lot of questions that are
plaguing your mind and one of them may be all about whether you are obliged to pay taxes for your online
business or not.
Calculating and paying your duly taxes alone is already one confusing ride, and surely it will get
more confusing if it will be mixed with an online business.
However, as they say, there’s no problem that cannot be solved. With just a few tips and guides, you can
find out how to pay taxes for your online business without any hassles or problems along the way.
The Charm Of Online Business
Before we talk about taxes and your online business,
let’s discuss first why more and more people are
getting attracted to starting their own online
business.
Well, first of all, it is very hassle-free compared to
having a business in the non-virtual world. You see,
in online business, you only have to type and click
for your business to boom.
Very minimal manual labor is needed in an online
business and one can even get to work at home in their
pajamas while managing their online business.
Now the question is: are online businessmen or
entrepreneurs exempted from paying taxes? The answer
is no. All individuals who are earning money online
are required to pay taxes.
Sure, the government can’t possibly keep track of how
much money each person generates online but then
again, it’s one of the citizens’ responsibilities to
go ahead and be responsible enough to pay for their
taxes.
The Real Deal About Most Online Businesses
The truth is, not everybody who does business online
is honestly paying their due taxes. Most online
businesses include shopping and it’s a known fact that
most if not all shoppers despise paying sales tax and
adore a bargain that is luxuriously tax-free.
The Internet is actually considered to be a great
venue for tax-free shopping which lures more and more
customers each day. Online retailers have been using a
no-tax shopping tag line to attract more online
shoppers to their business.
Sounds like a win-win situation, right? Online
shoppers enjoy numerous tax-free shopping sprees and
online retailers don’t pay their taxes. Most people
probably think that doing business through the
Internet is considered to be tax-free.
However, the fact is, some Internet sales are actually
subject to what we know as “sales tax” and online
consumers are the ones often responsible to remit any
unpaid sales tax on whatever online products they have
purchased.
They can actually remit it directly to their state
come tax-paying time.
Collecting Sales Tax The process of determining
whether you should pay taxes for your online business
or not may be quite confusing and overwhelming –
especially if it’s your first time to get involved in
online business.
However, here are just some few tips you should
remember: the obligation to pay the so-called “Sales
Tax” can be determined by the location of the
customers, and not the seller.
If a business does not actually have a physical
presence in a particular state (an example of this
would be your online store or business), it is not
required to collect sales tax from costumers in that
certain state.