dsifantasysports asked: is it required to pay internet business taxes. Because i’ve been looking and all i’ve seen is that 13 states make you pay. And texas is not required to make you pay income taxes.
This entry was posted
on Wednesday, July 22nd, 2009 at 9:24 am and is filed under Internet Business.
You can follow any responses to this entry through the RSS 2.0 feed.
Both comments and pings are currently closed.
July 23rd, 2009 at 12:21 pm
If you have to pay income tax where you live, you have to pay tax for business done over the internet. And all US citizens have to pay federal income tax so all internet business is taxable at least at the federal level.
July 26th, 2009 at 8:23 am
I don’t know of anything that you would not have to pay taxes on.
July 28th, 2009 at 11:21 am
You will still need to pay federal taxes, but may also have enough expenses from starting a new business that you may be in a loss for at least your first year. The best thing to do is to get a good cpa to do both your business and personal taxes. Remember too, if you charge sales tax for any merchandise then you will need to file that quarterly with your state…….
July 28th, 2009 at 2:33 pm
Yes.
You make money, Uncle Sam wants to “wet his beak”.
July 31st, 2009 at 3:19 pm
but what if you are selling information by e-mail.
August 1st, 2009 at 8:16 am
If you make a profit you will have to pay federal income taxes on the earnings, subject to the usual exemptions and personal deductions. Also if your income from the business exceeds a little over $400 will be subject to self-employment tax. If you make a profit and do not estimated quarterly payments for income tax and self-employment tax in a timely manner you may be subject to penalties for underpayment of taxes even you pay the taxes by the filing deadline.
You can download or order a copy of IRS Publication 334, Tax Guide for Small Business at the IRS website:
August 3rd, 2009 at 3:53 pm
Most states at this point do not require you to collect sales tax for them on sales to residents of their state if you do not have a connection (“nexus”) in that state. If you are a fellow Texan and operate as a sole proprietor there is no state income tax, but if you operate as a corporation, LLC, or partnership registered with the state, the recent changes in the state franchise tax may catch you. You would have to report business income in any case on your federal return. You may have to pay local taxes on property and inventory used in the business in Texas, but if you are operating out of your house on a modest scale you probably will not come to the attention of the appraisal district. As an additional note in Texas, if you are operating in a subdivision with deed restrictions, you can have problems with your homeowner association when operating a business out of your home if it generates additional traffic or otherwise is considered to detract from the neighborhood.
August 6th, 2009 at 7:33 pm
Not yet – at least to the Feds.
But your q is too broad. Of course you have to pay taxes on business – be it local, state, ‘sin’, excise tax
Are you talking income or sales. Always there’s sales taxes.
August 9th, 2009 at 3:14 pm
Go to your local small business office in your town. They usually offer free classes and have free computer programs that offer this information to you.