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Do I have to pay sales tax for my membership site ? Do I have to license my membership site?

Sicklerville, NJ |

I live in NJ and will be starting a membership website. In order to gain access to advice members will have to pay a monthly or yearly subscription? I am not selling items online. Am I obligated to pay sales tax or charge sales tax? In the state of NJ do I have to have an advice membership site licensed? If so can I obtain the license after the site has launched?

Attorney Answers 3


  1. You really need to sit sown with a business attorney. You do need a license and you will have to pay taxes. You also need insurance and to set up your company legally and correctly.

    If you found this Answer helpful, please mark it as "Helpful" or "Best Answer". Your feedback is greatly appreciated. PLEASE NOTE: The above statements are provided for informational purposes only and do not constitute legal advice. Transmission of the information is not intended to create, and the receipt does not constitute, an attorney-client relationship between sender and receiver. You should not act or rely on any information contained on this site without first seeking the advice of an attorney.


  2. From the information you have provided it sounds like your website will be taxable information services for New Jersey sales tax purposes. Before you go any further, you need to speak with a good tax and business attorney to set up the business properly. Depending upon the exact services provided, you may want to consider another location. This is not something that you should try to "do-it-yourself".

    Good luck

    Ron Cappuccio

    If you do not like this answer or disagree, please look at one of the other answers provided. It is not necessary for you to try prove this answer is "wrong" or something with which you do not agree. This is a free service for you based on limited facts. Nevertheless, many times you need to consult an attorney with the details to get actual advice specific to your concerns. Do not put too many details in your questions or comments because this makes the information public and could hurt you. Government Regulations contained in IRS Circular 230 regulate written communications about Federal tax matters, including e-mail, between us and our clients. This is another attempt by the government to limit your rights and to extend the control of government over individuals and businesses. Nevertheless, such communications are either opinions or other written communications. This is not an opinion. It is other written communication and was not written to be relied upon, by itself, to avoid any tax penalties. In order to receive assurances of protection from tax penalties from a written communication, you should get an opinion letter. If you would like to discuss an opinion letter relating to any matter, please contact me and I will explain what is involved and what it will cost.


  3. As the others noted, you should be consulting a business lawyer in private to explore your specific situation. It is not entirely clear whether you are subject to the sales tax regime, although it seems likely.

    I would suggest reaching out to a lawyer (perhaps several) for a free phone consultation and get some insights on a best course of action.

    Best regards,
    Frank
    Natoli-Lapin, LLC

    DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed with the law firm of Natoli-Lapin, LLC on the basis of this posting.

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